BG acquisition may force Shell to sell stake in Karachaganak

Karachaganak: Royal Dutch Shell’s forthcoming acquisition of the BG Group exploration company may trigger the forced sale of BG’s  29.25% stake in Kazakhstan’s highly lucrative Karachaganak field.
Located in the north-west of the country and and covering over 280km², Karachaganak is one of the world’s largest gas and condensate fields with estimated hydrocarbons in place of 9bn barrels of condensate and 48tr ft³ of gas, and estimated gross reserves of over 2.4 bn barrels of condensate and 16tr ft³of gas.
Acknowledged as a ‘cash cow’, the field is currently producing at record levels, and accounts for around 45% of Kazakhstan’s total gas production and approximately 16% of its total liquids production. The field is operated by the Karachaganak Petroleum Operating (KPO) JV  set up by the BG Group (29.25%), Eni (29.25%), Chevron (18%), LUKOIL (13.5%) and KazMunaiGas (10%).
According to a report in the Wall Street Journal at the weekend, there is a paragraph in BG’s 2014 annual report stipulating that the Kazakh government has the right to acquire the firm’s stake in Karachaganak if BG is sold.

Source: seekingalpha