MOSCOW: Russia's largest private oil firm Lukoil has sold some of its Kazakhstan stakes to China's energy giant Sinopec for $1.09 billion, the company said Thursday.
Lukoil has offloaded its 50 percent share in Caspian Investments Resources, which participates in five fields in the Central Asian nation, the statement said.
Lukoil remains the largest Russian player in Kazakhstan despite the sale with its involvement in the Tengiz, Karachaganak and Kumkol fields.
The deal with the Chinese giant has been dragging on after the two sides initially inked an $1.2 billion sale and purchase agreement last year.
Lukoil in February went to an arbitration court in February after Sinopec refused to finalize the deal.
Energy-rich former Soviet Kazakhstan is viewed by Moscow as remaining in its sphere of influence and is a part of a Russian-backed customs union.
The Central Asian nation is home to one of the world's largest offshore oil fields, the Kashagan field.
Energy companies Total, Eni, ExxonMobil, Shell and Kazakh state champion KazMunaigas, as well as Japanese firm Inpex and China's CNPC, are involved in the Kashagan field project.
Kazakhstan has said that work at the field is ahead of schedule and that production could begin in December 2016 after development was suspended by gas leaks.
Lukoil sells Kazakhstan stakes to Sinopec
Lukoil sells Kazakhstan stakes to Sinopec
Closing Bell: Saudi main index rises to close at 11,251
RIYADH: Saudi Arabia’s Tadawul All Share Index rose on Thursday, gaining 84.27 points, or 0.75 percent, to close at 11,251.81.
The total trading turnover of the benchmark index was SR5.38 billion ($1.43 billion), as 188 of the stocks advanced and 67 retreated.
Similarly, the Kingdom’s parallel market Nomu gained 157.22 points, or 0.67 percent, to close at 23,643.74. This comes as 44 of the stocks advanced while 32 retreated.
The MSCI Tadawul Index gained 10.88 points, or 0.72 percent, to close at 1,517.43.
The best-performing stock of the day was Saudi Kayan Petrochemical Co., whose share price surged 9.96 percent to SR5.30.
Other top performers included Ataa Educational Co., whose share price rose 9.94 percent to SR57.50, as well as Rabigh Refining and Petrochemical Co., whose share price surged 5.74 percent to SR7.55.
Saudia Dairy and Foodstuff Co. recorded the most significant drop, falling 5.93 percent to SR220.50.
Abdullah Saad Mohammed Abo Moati for Bookstores Co. also saw its stock prices fall 2.77 percent to SR43.56.
Zahrat Al Waha for Trading Co. also saw its stock prices decline 2.30 percent to SR2.55.
On the announcement front, Multi Business Group Co. reported its annual financial results for the year ended Dec. 31. According to a Tadawul statement, the firm recorded a net profit of SR352,172 during the year, down 98 percent from the previous year.
The company attributed the decline primarily to a 2 percent drop in building contracting revenues and a 73 percent decrease in gross profit.
Multi Business Group Co. ended the session at SR9.90, down 1 percent.
Hamad Mohammed Bin Saedan Real Estate Co. announced the signing of a memorandum of understanding with Saudi Awwal Bank to enhance collaboration in financing solutions, advance real estate development projects, and expand access to customer financing programs.
Hamad Mohammed Bin Saedan Real Estate Co. ended the session at SR6.67, up 1.21 percent.
