China National Oil and Gas Exploration and Development Corporation has signed an agreement with KazMunaiGas, the Kazakh state oil company, to purchase JSC Mangistaumunaigas for 3.3 billion U.S. dollars.

The purchase of the major oil developer in Kazakhstan included two oil and gas fields and all its other oil and gas assets, according to the China National Petroleum Corporation (CNPC), the parent company of the Chinese party.

"The transaction is an important step to develop long term strategic partnership between China and Kazakhstan. It also helps with our overseas expansion," CNPC, China's largest oil producer, said in an on-line statement.

JSC Mangistaumunaigas owns licenses to explore and develop 15 oil and natural gas fields in Kazakhstan as well as oil fields in the Caspian region.

The company's annual crude output stood at 40 million barrels in 2008, and had 41.8 billion cubic meters of natural gas reserve.

(Xinhua News Agency April 24, 2009)