PetroKazakhstan Inc. has received from Lukoil Overseas Kumkol B.V. ("Lukoil") a notice of intention to appear at the hearing on October 18, 2005 before the Alberta Court of Queen's Bench to consider the Company's application for a Final Order approving the previously announced Arrangement providing for the acquisition by a wholly-owned subsidiary of CNPC International Ltd. of all outstanding common shares of PetroKazakhstan for US$55.00 in cash.
In its notice of intention to appear, Lukoil states that it intends to oppose the Arrangement and request that the Court defer approval of the Arrangement until the issue as to whether Lukoil has a pre-emptive right to acquire the Company's interest in AO Turgai Petroleum under the Turgai shareholders' agreement as a result of the Arrangement is determined by the Arbitration Institute of the Stockholm Chamber of Commerce in accordance with the Turgai shareholders' agreement. In the alternative, should the Alberta Court of Queen's Bench grant the Final Order approving the Arrangement, Lukoil stated its intention to seek the appointment of an inspector to hold and manage the Company's interest in Turgai pending determination of the pre-emptive rights issue before the Stockholm Arbitration Institute.
PetroKazakhstan considers Lukoil's request is without merit, and intends to vigorously oppose the requested relief and ask the Court to grant the Final Order approving the Arrangement so that the Arrangement can be implemented as scheduled on October 19, 2005.
