Akin Gump has advised PJSC LUKOIL in the sale of its 50 percent stake in Caspian Investments Resources Ltd. to China-based Sinopec for a consideration of approximately $1.1 billion. The permits to make the transfer were signed and approved by the authorities in Kazakhstan in July 2015. The deal closed today.
Caspian Investments Resources Ltd. has been participating in the development of five hydrocarbon fields in Kazakhstan, with LUKOIL having joined these projects in December 2005. The company has drilled wells, expanded production capacity, upgraded injection systems and launched a series of petroleum gas utilization facilities. Following on from the sale, LUKOIL will remain the largest Russian investor in Kazakhstan.
The closing of the deal also marks the termination of LCIA arbitration proceedings between the parties launched during the transaction, on which Akin Gump also advised.
PJSC LUKOIL is Russia’s second-largest oil and gas company in terms of reserves and the largest Russian oil business group with annual sales of over $140 billion. It was the first Russian company to receive full listing on the London Stock Exchange.
Akin Gump Moscow corporate partner Natalia Baratiants led the team, with senior counsel Alexander Trukhtanov, supported by Beijing corporate partner Li Chen and associate Jingli Jiang. London litigation partner Justin Williams and counsel Tom Roberts advised in relation to the LCIA arbitration proceedings. They were supported by a team of lawyers in Moscow, London and Beijing.
Source: www.akingump.com
