Sinopec has entered into an agreement with Lukoil to buy for $1.2 billion, a 50% stake in Lukoil's Kazakh venture. "The transaction is meant to optimize Lukoil's overseas hydrocarbon asset portfolio," Lukoil said in a statement.
The venture, Caspian Investment Resources, owns stakes in four hydrocarbon production projects in Kazakhstan. Production from the projects amounted to 10.2 MMBOE (net to Lukoil) in 2013.
Lukoil said it would continue to participate in Kazakh oil and gas projects, including Kumkol, Karachaganak and Tengiz. The company is also a member of the Caspian Pipeline Consortium.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.