KazCham

Business Intelligence from Colibri Law Firm: Issue #92

UK-based Max Petroleum sold a 51 percent stake to AGR Energy, an investment vehicle owned by the Assaubayev family. The deal is worth approximately US$62.5 million (?37.1 million), the company said Monday. 

Max is an independent oil and gas exploration and production company focused on Kazakhstan.

AGR paid 1.64 per share, a 33 percent premium compared to closing market price on August 1.

The size of the purchase would usually trigger Rule 9 of the UK’s takeover code, requiring AGR to make a general offer to acquire the shares held by other shareholders.

Max will asks its shareholders to waive Rule 9 with a resolution at the next stockholder meeting, the company said.

The deal must also be approved by regulators in Kazakhstan. If the purchase is approved, AGR will nominate two directors to the company’s board.

The partnership will support Max’s development of its post-salt fields and its plans to resume exploration of pre-salt prospects on its block A and E licenses in western Kazakhstan.

ENERGY:

Areva, Kazatomprom sign deal to produce nuclear fuel for Asia (Dow Jones)

China pipes home 16.9 bcm of Central Asian gas – CNPC (Reuters)

Max Petroleum spuds ‘high impact’ well on Emba B prospect in Kazakhstan (Proactive Investors)

BUSINESS AND ECONOMY:

New beginnings in Central Asia
(bne) – Recent deals by local private equity funds indicate that the combination of the global crisis and the subsequent recovery is finally opening up new opportunities for private equity in Kazakhstan and the wider Central Asian region.

Kazakh grain harvest more than doubles to 29.5 million tonnes (Bloomberg)

Indicators – November 4, 2011 (Reuters)

METALS AND MINING:

Volatile markets force ENRC to delay Shubarkol deal (Reuters)

Hambledon Mining expects to restart operations at mineral process plant November 7(Proactive Investors)

POLITICS AND SECURITY:

Kazakh lawmakers seek to punish terror financiers (Central Asia Online)

Kazakhstani officials, law enfircement not ready for terrorist war – expert (Interfax)

SOCIETY:

Kazakhstan climbs one step up in 2011 Human Development Index (Interfax)

Cyanide pollutes Kazakh river (Central Asia Online)

SOURCE: http://silkroadintelligencer.com/2011/11/07/kazakhstan-daily-news-roundup-november-7-2011/

British oil explorer Max Petroleum said on Friday it found 12 meters of net oil pay  – the zone of a reservoir that contains economically producible oil  – at the Jurassic layer of the ASK-2 well in the Asanketken Field, at a depth of 1,284 meters and 1,308  meters.  Max said it was running further tests before drilling to a total depth of about 3,300 meters to reach the well’s Triassic reservoir, which has an unrisked mean resource potential of 50 million barrels of oil.

The explorer also said one of itsprospects in the Block E license area in Kazakhstan was non-commercial, following disappointing results at one of the wells at the site that prompted it to abandon the well.

SOURCE: SRI, Kazakhstan Daily News Brief, dated 24 October, 2011, available at http://silkroadintelligencer.com/wp-content/files/srikznewsbrief_oct24_2011.pdf

Max Petroleum, a small Kazakhstan- focused oil explorer,  spudded  a new exploration well at the Zhalgyz  South prospect in Block A, the company said on Tuesday.  The resource potential of the Zhalgyz South prospect has been estimated at 18 million barrels of oil.

On Monday, Max announced the spudding  of the ZMA-E2 exploration well in the Zhana Makat field,  a week after reporting positive results from the previous Zhana Makat well, ZMA-A23, which intersected 10 meters of net oil pay.

SOURCE: SRI, Kazakhstan Daily News Brief, Issue dated October 12, 2011

ENERGY:

Kazakhstan, Karachaganak partners yet to reach agreement – Mynbayev
(SRI) – Kazakhstan is yet to reach an agreement on buying into the Karachaganak oil and gas project, and new negotiations on the planned third phase of its development will be necessary once a deal is reached, Kazakhstan’s Minister of Oil and Gas Sauat Mynbayev said on Thursday.

Kazakhstan not ready to join EU-backed gas pipelines (SRI)

KazMunaiGas starts reserves audit (SRI)

Caspian oil shipments to fall amid work on CPC pipeline expansion (Reuters)

Max loses Kazakh tax appeal (Upstream Online)

Kazakh oil giant denies talks with striking workers (RFE/RL)

BUSINESS AND ECONOMY:

Kazkommertsbank receives $130 million to fund stalled construction projects (SRI)

Kazakhstan produces 23.8 million tonnes of grains to date (AgriMarket.Info)

Kazakh Ministry of Economic Development and Trade raises 2011 foreign trade forecast(Interfax)

Indicators – October 6, 2011 (Reuters)

POLITICS AND SECURITY:

Kazakhstan welcomes Putin’s Eurasian Union concept (Daily Telegraph)

SOCIETY:

Shrinking lake in Kazakhstan portends hard, dry times ahead (Washington Times)

SOURCE: http://silkroadintelligencer.com/2011/10/07/kazakhstan-daily-news-brief-october-7-2011/

ENERGY:

Kazakhstan willing to pay up to $1.1 billion for Karachaganak stake (SRI)

On the move: KazMunaiGas names new CEO (SRI)

EBRD considers funding Kazakh wind farms (Reuters)

KazMunaiGas profit up nearly 60% in first half (SRI)

Kazakhstan ready to ramp up uranium output to 30,000 tonnes – official (SRI)

Max cheers Kazakh well (Upstream Online)

BUSINESS AND ECONOMY:

Government ready to inject cash into BTA Bank if needed – Kulibayev (SRI)

Kazakhstan to introduce EU standards for chemicals (Interfax)

Indicators – October 5, 2011 (Reuters)

POLITICS AND SECURITY:

Kazakhstan bans communist opposition party ahead of election (Trend)

REGIONAL:

Ivanhoe, Rio refuse to renegotiate Mongolia deal (AFP)

SOURCE: http://silkroadintelligencer.com/2011/10/06/kazakhstan-daily-news-roundup-october-6-2011/

ENERGY:

Max Petroleum reports ‘very encouraging’ test results from ASK-1 well (Proactive Investors)

Moinak hydroelectric power plant close to completion – Issekeshev (SRI)

Kazakhstan to sell natural gas to Kyrgyzstan (SRI)

BUSINESS AND ECONOMY:

Kazkommertsbank back out of Barclay’s deal in Russia – Kommersant (SRI)

BTA seeks $1 billion from farmer amid fight with ex-chairman (Bloomberg)

Alliance makes payment on recovery notes (SRI)

Kazakhstan imposes temporary ban on vegetable oil exports (AgriMarket.Info)

Indicators – September 29, 2011 (Reuters)

METALS AND MINING:

ENRC says chairman Sittard, CEO Vulis to remain in posts (Bloomberg)

ENRC review no quick fix for flagging shares (Reuters)

Kazatomprom, Toshiba establish rare metals joint venture (SRI)

Frontier Mining on track towards becoming mid-tier copper producer (Proactive Investors)

SOCIETY:

Kazakhstan may reform media libel laws – government official (The Telegraph)

REGIONAL:

Praise or pander: Kyrgyzstan honors the neighbors (Reuters)

Obama congratulates Uzbek President on independence (AFP)

SOURCE: http://silkroadintelligencer.com/2011/09/30/kazakhstan-daily-news-roundup-september-30-2011/

HEADLINES:

Kazakhstan, France talk rare earths and energy during Nazarbayev’s visit to Paris
(SRI) – France and Kazakhstan signed a number of cooperation agreements on energy, aviation and mining during Kazakh President Nursultan Nazarbayev’s visit to France on Monday.

ENERGY:

Max Petroleum says Kazakhstan well successful (Reuters)

Kazakhs to sell gas to Kyrgyz after Uzbekistan raises price (RFE/RL)

Kazakh oil minister promises end to fuel deficit (Trend)

BUSINESS AND ECONOMY:

Kazakhstan harvests 18.3 million tonnes to date, eyes record crop (SRI)

Polpharma buys Kazakhstan’s largest pharmaceutical company (SRI)

Tenge to remain stable despite market turmoil – Marchenko (SRI)

Kazakh banks reduce external debt by $30 billion since 2007 (SRI)

On the move: Kazkommertsbank (SRI)

Indicators – September 20, 2011 (Reuters)

METALS AND MNING:

ShalkiyaZinc to seek financing to fund new zinc processing plant (SRI)

SOURCE: http://silkroadintelligencer.com/2011/09/21/kazakhstan-daily-news-roundup-september-21-2011/

ENERGY:

Lukoil not interested in Kashagan – Alekperov (SRI)

KMG EP to buy back up to $300 million worth of shares (SRI)

Kazatomprom net income rises 77% in first half (SRI)

Max Petroleum to drill ‘deep salt’ Emba B target next month (Proactive Investors)

Fitch raises rating of Kaztransgas to BB+ (SRI)

BUSINESS AND ECONOMY:

BTA Bank seeks Ablyazov arrest amid claims of Kazakh strike support (SRI)

Polish company to buy Kazakhstan’s largest pharmaceutical producer (SRI)

Kazakhstan intends to become an important transit country for China-Europe trade – Issekeshev (SRI)

Grain harvest may reach record levels in 2011 (SRI)

Nurbank reports positive income in H1 (SRI)

Indicators – September 16, 2011 (Reuters)

METALS AND MINING:

Mashkevich stresses he has no plans to sell ENRC stake (SRI)

Hambledon Mining acquires two new Kazakh gold projects to boost future production (Proactive Investors)

ENRC to invest $6 billion in Kazakhstani assets development (Interfax)

Kazakhstan to create metallurgical free economic zone (Interfax)

SOCIETY:

‘We don’t have anything to eat’ – Desperation and poverty growing as Kazakh strikes drag on(RFE/RL)

Kazakhstan ready to re-open access to LiveJournal after banned content is removed (Interfax)

U.S.-Russian space trio lands safely in Kazakhstan (Reuters)

REGIONAL:

EU trio takes 50% stake in Russia’s South Stream (AFP)

Uzbek leader’s daughter hits fashion controversy (AFP)

Kazakh PM says Kyrgyzstan should join CIS Customs Union (RFE/RL)

SOURCE: http://silkroadintelligencer.com/2011/09/19/kazakhstan-daily-news-roundup-september-19-2011/

ENERGY:

Kazakhstan simmers as striking oil workers sacked
(bne) – Angry protestors gather every day in the main square in the Kazakh town of Zhanaozen in a rare display of popular dissent. Many of them used to work at Uzen, one of Kazakhstan’s largest oilfields, but were fired in August in an attempt to stop a four-month strike at the facility.

Kazakhstan to produce 102 million tonnes of crude in 2016 (SRI)

Max Petroleum makes discovery at Sagiz West (Proactive Investors)

BUSINESS AND ECONOMY:

On the move: Head of Association of Financiers of Kazakhstan elected Kazkommertsbank independent director (SRI)

Mobile rates fall in Kazakhstan but remain highest in CIS (SRI)

Kazakhstan exports grow 52% in first half – KazNex (SRI)

Chagala Group net profit rises in first half (SRI)

Fitch affirms Eastcomtrans at ‘B-’ (SRI)

Kazakhstan to spend $164 million to build third communications satellite (SRI)

Indicators – September 12, 2011 (Reuters)

METALS AND MINING:

Frontier Mining – pushing forward to production (Proactive Investors)

POLITICS AND SECURITY:

Kazakhstan to spend KZT13 billion on fighting extremism in 2012 (Interfax)

SOURCE: http://silkroadintelligencer.com/2011/09/13/kazakhstan-daily-news-roundup-september-13-2011/