Lukoil sells stake in Kazakh development to Sinopec

MOSCOW, April 15 (UPI) -- Russian oil company Lukoil said Tuesday it sold its 50 percent stake in Kazakh projects to China Petroleum & Chemical Corp for $1.2 billion.

Lukoil said Tuesday it signed a purchase and sale agreement with the Chinese company, known also as Sinopec. The Russian company said its share of commercial hydrocarbon production in Kazakhstan was 10.2 million barrels of oil equivalent in 2013.

"The transaction is meant to optimize LUKOIL’s overseas hydrocarbon asset portfolio," Lukoil said in a statement.

There was no statement on the acquisition from Sinopec. The sale involves Lukoil's stake in Caspian Investment Resources Ltd.

The Russian company said it would continue operating in the Kumkol, Karachaganak and Tengiz projects and pipeline developments in Kazakhstan.

"We carry out our activities in Kazakhstan and are interested in investment accrual there," Lukoil President Vagit Alekperov said in a statement. "The company intends to reallocate the investments to geologic exploration projects, including those in the Kazakhstan sector of the Caspian Sea."