Purchase of Arco by BP Amoco May Touch

Interests of the Other Oil Giant in Kazakhstan



The British-American oil giant, BP Amoco officially announced completion of its US$ 27 billion purchase of Arco company, Reuters said on Tuesday. In our opinion, this might be interesting to another oil king, Chevron working in Kazakhstan.

For the country this news is important from the point of view of Arco's participation in production of Kazakh oil. The matter is that Lukarko, the joint venture of already invalid Arco and of Russian Lukoil, possesses 5% of stocks in the JV Tengizchevroil (TCO).

Chevron interested in purchasing of additional stocks of TCO may become active in connection with the coming of a new company's administration. Currently Chevron owns 45% of shares in TCO, and if it purchases another 5%, it will significantly strengthen Chevron's influence on the JV.

For the being the company does not comment on the situation surrounding the merge of BP Amoco and Arco.

The fate of Lukarko possessing 12.5% shares in the CPC remains unclear. In his interview to THE GLOBE, the BP Amoco chief representative in Kazakhstan, Sagindyk Nuraliev said now he could say nothing in this regard, yet he emphasised �the policy of the new company had not been determined yet.�

The Lukoil press service said to THE GLOBE �the company hoped for further co-operation with the new shareholders.�

The BP Amoco second official, Rodney Chase promised the company would continue the Arco's strategy, according to Reuters. �We are proud of success made by Arco with its trademark and its approach to prices. We think that was a wonderful approach to the market,� he said.

The deal had been concluded for the whole year due to concern of the US authorities in an emerge of the absolute monopolist in Alaska, as thanks to the merged assets of BP Amoco and Arco they companies could get control over 75% of oil production in the US most northern state.

However, finally BP Amoco agreed to sell Arco's assets in Alaska to Phillips Petroleum Co., Reuters reports.

For the last year this is the third merge of oil giants. Before that, French Totalfina and Elf Akiten, US Exxon and Mobil merged in the last year.

Earlier BP Amoco, missing Russian Gasprom, announced it agreed with partnership of Chinese PetroChina and was going to buy 20% of shares of this company placed in the Hon Kong and New York exchanges.

Hsbc And Merrill Lynch To Create New Company Forming The First

Global Online Banking  & Investment Service


HSBC Holdings plc and Merrill Lynch are joining forces with a groundbreaking 50:50 partnership to create the first global online banking and investment services company.

The new company will serve individual customers across the world except in the United States, providing the industry's most comprehensive and innovative range of online banking and brokerage services for consumers who prefer to make informed investment decisions for themselves.

HSBC and Merrill Lynch together will provide up to US$1 billion in start-up capital. The new company will be co-branded "Merrill Lynch HSBC' and its formal name will be announced shortly. It will be headquartered in London and will be launched later this year in the UK, followed by Australia, Canada, Germany, Hong Kong SAR and Japan, with other parts of the world to follow.

The new company's interim Chief Executive will be Edward Goldberg, currently Merrill Lynch's Executive Vice President of Operations Services. Mr Goldberg has been with Merrill Lynch for 39 years and has extensive experience in operations, systems, technology and the private client business. The Chief Operating Officer will be appointed from HSBC and will be announced shortly.

�We couldn't be more excited to be working together,� said Sir John Bond, HSBC Group Chairman, and David Komansky, Chairman and Chief Executive of Merrill Lynch. �This revolutionary new online business combines the strengths of our firms - financial expertise, innovative products and services, research content, technology platforms, geographic reach and strong brands - to create the model for client service in the 21st century. By combining resources, our two companies are able to serve customers in more markets, more quickly and more effectively than either one could on its own.�

The new company strategically combines Merrill Lynch's worldwide investment capabilities and its award winning research team with HSBC's global presence, client relationships and processing capabilities.

Sir John Bond added: �When we announced our results for 1999 we said that we believed e-commerce will change the fabric of how business is done in financial services. We also said it's time to go to market. This initiative shows our determination to use the internet to build new businesses in the rapidly expanding global market for personal investments. The new company will have a transforming effect on the rate at which HSBC's e-business strategy can be implemented. It is a major step forward for our wealth management strategy.

�By joining with Merrill Lynch, one of the world's pre-eminent brands in financial management, we will accelerate our ability to deliver a range of high quality investment and banking services to this burgeoning market. Working together we can draw on our combined resources, both human and financial, to expand these services globally.�

Mr Komansky said: �By leveraging the recent success of Merrill Lynch Direct in the US and by forming this partnership with HSBC we will accelerate dramatically the global roll out of an online business for affluent individual investors. This unique venture is the first online offering combining world class personal banking and investment services. Each company's product and service offerings fit well, as do our geographic strengths. With HSBC's international reach and extensive presence in many of the world's emerging markets, as well as among the more affluent communities in Europe, the winner in this combination is unquestionably the customer.

�At a stroke, the new company makes Merrill Lynch and HSBC global players in e-commerce. In fact, key measures indicate continued robust growth in online usage around the world. Coupled with the desire of global customers to seek out sound and reliable financial institutions, there's never been a better time for our two companies to re-invent the manner in which quality banking and investment services are delivered.�

As they take more control of their finances, people will want information, product choice, and access to international markets. Across Europe, Asia Pacific, Japan and Latin America, it is estimated that the number of households who are "on the net" and are active investors will grow more than four-fold in the next decade to 50 million.

At the core of the new company will be a deposit account through which customers will be able to invest in a wide range of products including stocks, bonds, mutual funds and unit trusts, and tax efficient products appropriate to each local market. They will also have access to a wide range of market information. Through the same account, customers will earn a high rate of return on their cash and be able to access it via cheque, charge card, wire transfer or automated teller machines. Over time, the service will be extended to include a range of online banking products such as bill payment facilities, mortgages and credit cards.

Customers will have access to a physical network of offices in key locations and round the clock telephone services. Dedicated staff will be available to provide client service and support.

Kazakhstani Market is Promising, says Lufthansa

ALMATY, Apr 20


�The Kazakhstani market is of great interest for our company and we are making optimistic plans for the future,� a representative of Lufthansa in Kazakhstan and Kyrgyzstan told THE GLOBE on Thursday.

According to Dirk Grossmann, the period of irregular business development has passed in Kazakhstan and now it is developing at a more moderate, yet a stable tempo.

With the aim of promoting tourism in Germany, Lufthansa held a workshop, Profi Talk 2000, in which 20 tourist agencies participated. In future it is planned to conduct similar seminars twice a year.

In Mr. Grossmann's opinion, this event will be a step toward successful co-operation between tourist companies and national air company.

The workshop was held as part of the international exhibition, EXPO 2000. This exhibition will be held in Hanover from June 1 to October 31. About 40 million tourists will attend the exhibition.

One of the participants of the workshop, the German Ambassador to Kazakhstan, Jorge Mitger said that during the last year about 4.2 million tourists, including 60,000 Kazakhstanis had visited Germany.

Russia to Grant Additional Oil Transit Quotes to Kazakhstan


Apr 20 (KazAAG)

On April 19, the Kazakhstani Minister of Energy, Industry and Trade, Vladimir Shkolnik, and the Russian Minister of Fuel Energy, Victor Kalyuzhny signed a protocol agreement in Moscow. According to the protocol, in 2000, Kazakhstan is to receive an additional quote of 1 million tons to transport state oil obtained through royalty, to foreign countries via the Atyrau-Samara pipeline.

Russia will also grant Kazakhstan a quote of 2 million tons to transport hydrocarbon raw material through the new route of Mahachkala-Novorossyisk. The JSC, �Aktobemunaigas�, was granted an oil export quote of 1.5 million tons to transport its oil to foreign countries.

Russia's Ministry of Energy has also reserved 1.5 million tons of oil in exchange to the Pavlodar refinery, according to the substitute scheme. Kazakhstani oil companies will earn profit of US$ 200 million from additional quotes, stipulated in the protocol. The national budget will gain US$ 70 to 80 million.

This year, the total of Kazakhstan's oil export to the Black Sea ports will come to 12.5 million tons.

Former Prime Minister, Kasymzhomart Tokayev, announced that all relations of the two countries' oil and gas industries were being regulated by the intergovernmental Agreement signed in 1993. Kazakhstan's Ministry of Energy, Industry and Trade and the Russian Ministry of Fuel Energy annually sign protocols to fulfil the Agreement.

NNK Kazahoil has chosen the advisers for the bonds issue


In the today's press release the National petroleum company Kazahoil has pronounced results of the tender. The financial consortium formed by JSC Halyk Bank of Kazakhstan, Closed JSC Affiliated bank ABN AMRO Bank Kazakhstan and JSC Kazkomerts Securities is chosen as the financial advisers, which will help the company in placement of its bonds on the domestic market of Kazakhstan.

The director of the assets management department of Kazahoil Beimbet Shajahmetov has told REUTERS that most likely the bonds will be issued in May to the sum of $15-20 million. Term of circulation is two years.

Kazahoil hopes on the demand of the Pension Assets Management Companies, which are limited today in a choice of financial tools. As far as it is known to IRBIS, these hopes look rather justified. Pension Assets Management Companies wait for these bonds. But demand will depend on offered yield.

Besides Kazahoil continues to work above the project of Securities placement on the world market. Beimbet Shajahmetov does not exclude an opportunity of an appearance of the company on the debt world market in the present year after the internal bonds placement. As it was told volume euronotes issue can make $60 - $80 millions.

Means received a the placement Kazahoil plans to the oil production magnification.

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