An updated agreement on the creation of a joint venture, under KMG International N.V. (formerly Rompetrol), between JSC NC 'KazMunayGas' (KMG) and a major Chinese energy company, China CEFC Energy Company Limited, was signed in Bucharest. KMG and CEFC will participate in this newly created joint venture, based on a share distribution of 49% to 51%, respectively.
As a part of the agreements reached, CEFC undertakes a number of commitments, according to which it will make investments in Europe and Silk Road countries and develop jointly with the KMG, projects in the field of oil refining and development of gas station network.
The initial set of agreements was signed in Astana, on 29 April 2016. Parties have required an additional round of negotiations to settle the issues between the parties, on new legal circumstances arisen on the territory of Romania.
The final stage of the transaction will be its approval with the competent authorities of Romania and European Commission, obtaining necessary confirmations from the financial institutions. It is expected that these procedures will be completed in the first half of 2017 (1H17).
Chairman of the Management Board of NC 'KazMunayGas', Sauat Mynbayev, stated, "Cooperation with CEFC opens for KazMunayGas, under KMG International, a number of new opportunities to extend the participation of Kazakhstan and China to European markets on sales of oil and oil products, on the basis of mutually beneficial and long term partnership with Chinese investors."
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