RusEnergy

29 May 2007 - Upstream OnLine - Kazakhstan's state-run player KazMunaiGaz E&P has been granted the option to buy 50% of Citic Canada Petroleum , formerly known as Nations Energy which was bought by China's Citic Group last year. Citic granted the option to KazMunaiGaz E&P's state-owned parent, KazMunaiGaz, after the Kazakh government threatened to block the $1.9 billion sale of the formerly Canadian-owned company. Citic itself is lending the Kazakh company $805 million to pay for the shares, leaving KazMunaiGaz E&P to find $150 million. "If the option is exercised, $150 million of the acquisition price will be equity financed and entitled to receive certain priority return on investment, while the remaining balance will be debt financed without any recourse to the purchaser," Reuters quoted KazMunaiGaz E&P as saying in a statement. The company has until 1 September to exercise the option, although it can be extended by mutual agreement.