Kazakhstan's government will regain a controlling stake in national oil and gas producer MangistauMunaiGas, sold to Indonesia's largest energy company Medco nine years ago, the prime minister said on Monday.

"I am issuing instructions to complete the purchase of no less than 51% of shares in MangistauMunaiGaz by the state," Karim Masimov said.

MangistauMunaiGaz, founded in 1995, is one of the largest oil producers in Kazakhstan. The company has proven oil reserves of 500 million barrels of oil equivalent according to western standards, and daily output of 115,000 barrels.

Masimov said the state must regain control over MangistauMunaiGaz's Pavlodar refinery, and increase its gasoline and aviation fuel production capacity.

"This issue has been dragged out far too long," the premier said.

Central Asia Petroleum, a Guernsey-based unit of Indonesia's MedcoEnergi, bought a 60% stake in the company in May 1997.

MangistauMunaiGaz's oil output is largely focused on the Kalamkas deposit, which yields 90,000 barrels of oil per day.

RIA Novosti


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