Russia's deal to buy Oman stake in Caspian oil pipe under threat
Russia's deal to buy Oman's 7% stake in the Caspian Pipeline Consortium may be delayed or fail altogether, business daily Kommersant reported on Thursday according to RIA Novosti.
The Caspian Pipeline Consortium (CPC), designed to carry Kazakh and Russian crude to a terminal on the Black Sea, was commissioned in October 2001. Its capacity currently stands at around 30 million metric tons of oil per year and is expected to be doubled by 2012.
A source close to the Russian government told Kommersant that Kazakhstan, another shareholder in the consortium, wants to buy Oman's shares. The Central Asian country has already adopted amendments to its legislation making it more difficult for Russia to carry the deal through, Kommersant said.
Oman decided to quit the CPC back in March, sending an offer to sell its shares to the consortium's two other state shareholders - Russia (which holds 24%) and Kazakhstan (19%).
Russian state oil pipeline operator Transneft, the owner of Russia's stake in the consortium, announced at the time that it had accepted an offer to buy the shares for $701 million. Sources close to the CPC explained that if both countries were to accept the offer, they would have to divide the shares in proportion with their interests, meaning 3.9% for Russia and 3.1% for Kazakhstan.
"The stake of 3.1% is not enough for Kazakhstan because in this case it would fail to gain a blocking interest in the CPC," Kommersant cited sources close to the CPC as saying.
If both state shareholders refuse, the stake will be offered to private shareholders.