China has outbid India to acquire Petrokazakhstan. China, through its flagship company China National Petroleum Corp, put in a revised bid of $4.2 billion much higher than $3.2 billion offered by the ONGC-Mittal combine that represented India.

In the first round of bidding, India was much ahead of China. However, the Chinese enhanced their bid value, leaving India out of the race. It is alleged that Indians were not given a chance to re-bid. India, it is learnt, had offered to increase its bid value on 19 August 2005 after having put its first bid on 15 August 2005.

Petrokazakhstan's board has recommended that its shareholders accept the Chinese bid. The transaction is expected to close in October 2005.

Background: Based in Calagry (Canada), Petrokazakh is the third largest petroleum producer in the Central Asian country with a 12 per cent share in oil producer. It owns 50 million barrels of oil reserves that produce 1,50,000 barrels per day. The company also owns a petroleum refinery in Kazaksthan. KzaMunaiGas is Kazakhstan's largest oil producer followed by Chevron.

Also See:

ONGC-Mittal bid for Petrokazakh (15-Aug-05)

ONGC-Mittal in pact for overseas ventures (24-Jul-05)