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%.
MAIN FACTS:
-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 ed.ballard@dowjones.com