KazMunaiGas (KMG) have said the deal, in which KMG and CNPC Exploration and Development Company (CNPC) will jointly purchase MangistauMunaiGas (MMG), will be completed by the end of July, the official China Securities Journal reported Wednesday.

Chinese state-owned oil producer CNPC announced last week that it had signed an agreement with KMG on a US$5 billion credit line and expansion of cooperation in the oil and natural gas industries.

According to the KMG statement, the acquisition of MMG will be carried out via Mangistau Investments B.V., a joint venture equally owned by KMG and CNPC. Mangistau Investments B.V. is affiliated to Central Asia Petroleum Ltd., an Indonesian oil producer.

MMG owns 36 oil and gas fields, of which the biggest are the oil fields of Kalamkas and Zhetybai. The two fields have oil reserves totaling 128.9 million tons.

For more details, please read the full Chinese coverage at:

http://paper.cnstock.com/html/2009-04/22/content_68761521.htm

(China.org.cn Yan Pei, April 22, 2009)