LONDON--BG Group PLC (BG.LN), an integrated natural gas company, Thursday announced that its agreement with the Republic of Kazakhstan and the other contracting companies in the Karachaganak gas-condensate field in north-west Kazakhstan, which was signed in Dec. 2011, has been completed, meaning the company's interest in the project is cut to 29.25% from 32.5%.
-Under the terms of the deal, Republic has acquired a 10% interest in the Karachaganak Final Production Sharing Agreement (FPSA) for $2.0 billion cash and $1.0 billion non-cash consideration
-Tax of $1.0 billion is payable on the gain arising on the disposal.
-Republic's interest in the Karachaganak FPSA will be managed by the national oil company, KazMunaiGas (KMG).
-With this agreement in place the partnership can move forward with field development plans
-Shares at 0715 GMT up 11 pence, or 0.9%, at 1,267 pence valuing the company at GBP43 billion.
-Write to Ed Ballard at [email protected]