Saturday, April 24, 2010

BG Group (LSE:BG) Battling for Karachaganak Stake

With Kazakhstan desiring to push its way into a stake into the huge Karachaganak oil and gas field in the western part of the country, BG Group (LSE:BG) has been fighting the move, as it would mean they would lose a portion of its stake in the lucrative project.

Also part of the consortium operating the field are Eni SpA (MI:ENI) from Italy, LUKOIL (MM:LKOH) from Russia and Chevron (NYSE:CVX) from the U.S.

The latest pressure from Kazakhstan to force its way into the consortium is to accuse the KPO of transgressing the immigration laws of the country.

Another bizarre strategy was to accuse Karachaganak of producing more oil and gas than under agreement with the government in 2008.

Ongoing talks are reportedly strained, and it's understandable why when you look at what the Kazakhstan government is attempting to do.

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