CNPC to own stake in giant Kazakh oil field

To pay US$5 billion for ownership.

China National Petroleum Corporation (CNPC) is on the verge of acquiring an 8.4% stake in Kashagan, a giant oil field off Kazakhstan's Caspian coast. Sources said the deal could be sealed as early as this week.

CNPC is a Chinese state-owned oil and gas corporation and the largest integrated energy company in China.

Kazakh state-controlled KazMunaiGas is expected to acquire the stake and sell it to CNPC. Beijing is also reported to have offered access to one of its ports to give the Kashagan consortium access to the Pacific. On the other hand, the consortium developing the field may agree to export Kashagan crude to a refinery in China's Sichuan province.

China has been steadily increasing investment in Kazakhstan's oil and gas sector, as it seeks to secure steady supplies of hydrocarbons to meet growing domestic demand. Around 25% of Kazakhstan's oil output is now produced by Chinese companies.

Kashagan Field is an offshore oil field in Kazakhstan's zone in the Caspian Sea. The field is located in the northern part of the Caspian Sea close to Atyrau and is considered the world's largest discovery in the last 30 years.