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Netherlands: Shell may lose Kazakh gas field in merger with BG

By  |  May 18, 2015

Royal Dutch Shell recently finalized its $70 billion merger deal with BG Group. Though the planned merger will allow the combined entity to become the world’s largest LNG producers, it still poses certain risks for BG’s gas assets in Kazakhstan.

According to BG’s 2014 annual report, the merger could cost Shell, as it will not be able to benefit from Kazakhstan’s massive gas field. This particular field is of great value to BG.

The Kazakhstan government in the past has a history of over-exercising its pre-emption rights for resources. However, the government has not given any indication to buy out BG’s field once the merger takes place. The mega merger is expected to take place early next year after it gets the regulatory approval.

 

Full content: Market Watch

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