BP has divested its interest in Kazakhstan's Tengiz oil field and the Caspian Pipeline Consortium (CPC) pipeline, carrying oil between Kazakhstan and Russia, by selling its 46% stake in LUKARCO BV to Russia's Lukoil. Lukoil is now the owner of a 100% stake in LUKARCO.
Lukoil, which already owns 54% of LUKARCO, will pay $1.6 billion in cash in three installments over the next two years. A $43 million BP loan will also be repaid to BP by LUKARCO. LUKARCO owns a 5% share in TengizChevroil (TCO), which produces oil from the Tengiz field, and a 12.5% interest in CPC.
David Peattie, BP's head of Russia and Kazakhstan, said, "We are pleased to have concluded this sale with Lukoil, which follows our earlier transaction with KazMunaiGaz. We wish CPC every success in achieving the planned expansion of the pipeline which is important to Kazakhstan and Russia.”
The sale to Lukoil means that BP has no remaining share in CPC or Tengiz. In April 2009 BP sold its 49.9% stake in Kazakhstan Pipeline Ventures (KPV), which held a 1.75% share in CPC, to state-owned KazMunaiGaz for $250 million.
