Shares of Citic Resources Holdings, the resource-focused flagship of state-owned conglomerate China International Trust & Investment Corp (Citic), soared 14.2 per cent to a five-year high after the Hong Kong-listed unit won the right to acquire some Kazakhstan oil assets from its parent.
The move came before the deal to buy assets from Nations Energy of Canada has been completed.
The purchase is subject to approval by the Kazakhstan government and Nations Energy's shareholders and is not expected to be completed until the end of this year.
Citic Resources paid a nominal US$10 to its parent for the right to buy 100 per cent of Karazhanbasmunai which has exclusive rights until 2020 to develop the Karazhanbas oil and natural gas field in southwestern Kazakhstan as well as some oilfield services and transport assets.
The field, with proved reserves of more than 340 million barrels, produces 50,000 barrels a day.
The option is valid for a year after the parent's acquisition is completed.
Citic Resources said in a statement filed with the Hong Kong stock exchange that if it chooses to exercise the right, its acquisition price will roughly equal the US$1.91 billion that its parent agreed to pay for the assets.