(Yicai Global) Sept. 1 -- Shares in Zhongman Petroleum and Natural Gas Group advanced today after the Chinese oilfield services firm said its United Arab Emirates-based subsidiary will pay USD46.6 million to obtain a majority stake in a sister company and in this way take control of an oil and gas field in Kazakhstan.

ZPEC’s share price [SHA:603619] was trading up 2.7 percent at CNY21.73 (USD3.15) as of 11.30 a.m. China time today.

Zhongman Petroleum and Natural Gas Gulf plans to purchase 24.3 percent equity in China Rising Energy International’s Dubai unit, raising its stake to 51 percent, and in this way will indirectly control an oil and gas field in Tenge, southwest Kazakhstan, Shanghai-based ZPEC said yesterday.

Both ZPEC and Cayman Islands-registered CREIC are owned by Zhongman Investment Holding and both are engaged in oil exploration and development. The takeover will reduce competition between the two and should take effect from Dec. 31, 2023.

The Tenge oil and gas field has 64.4 million tons of proven and probable crude oil reserves, 5.9 million tons of which is economically workable as well as 21.8 billion cubic meters of proven and probable natural gas reserves, according to a report by third-party evaluator Apex Reservoir Service that was released on June 30.

There are around 25 medium and large-sized oil and gas fields around Tenge, and the region has the most developed oil and gas infrastructure in the central Asian country, ZPEC said.

Editor: Kim Taylor