China and Kazakhstan on Saturday reached a US$5 billion energy deal, Reuters reported. Under the agreement China will receive an 8.33% stake in Kashagan, a giant offshore oilfield in the Caspian Sea. Signed during Chinese President Xi Jinping’s visit to Kazakhstan, the deal secures hydrocarbon supplies for the world’s largest energy consumer. The transaction further increases China’s rising clout in post-Soviet Central Asia, once Russia’s imperial backyard, and blocks an attempt by global rival India to get a stake in the oilfield.
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