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. Last Updated: 07/27/2016

TNK-BP Mulls Offer for Kazakh Oil Firm

TNK-BP is considering making an offer to buy Kazakh oil producer Zhaikmunai, sources close to the Russian company told Reuters on Tuesday.

The news pushed Zhaikmunai shares up xx percent to close at xx, its highest in three weeks, in London trading.

"I know there is an offer [to buy Zhaikmunai]," one of the sources said on condition of anonymity. "The company is looking at it."

The source did not specify the size of the stake or the offer price. A second source close to TNK-BP, which is half-owned by BP, confirmed that the company had received the offer.

TNK-BP declined to comment. Zhaikmunai could not be reached for comment.

A government source in Kazakhstan confirmed that Zhaikmunai was up for sale. Under Kazakh law, all oil asset deals must first be cleared by the government, which can choose to buy the assets itself should it wish.

"The government has the right of first refusal, and a decision has yet to be made," the Kazakh government source said.

London-listed Zhaikmunai produces 8,500 barrels of oil per day at the Chinarevskoye field in western Kazakhstan. The company said last month that it was cutting capital expenditure for 2009 and delaying some projects because of the oil price decline.

In 2007, when Zhaikmunai raised $100 million by selling a 9 percent stake on the London Stock Exchange, it said Belgian private equity firm Probel Capital Management was its main shareholder.(Reuters, MT)