Sources from the Kazakh government told Reuters that Kazakhstan would be selling 8.33% of its stake in its Kashagan oilfield to China. The deal was valued at USD 5 billion or GBP 3.19 billion. The sources said the agreement would most likely be signed by both parties on Saturday.

According to officials of the Kazakh government who spoke on the condition of anonymity, heads of KazMunaiGas and China National Petroleum Corp would sign the sale and purchase agreement in the capital of Kazakhstan, Astana. One of the officials told Reuters, "We suppose that the transaction will be closed by late September or late October."

Chinese oil firms already have projects in Kazakhstan but the deal at Kashagan oil field is considered a milestone. Reuters said this agreement further cemented China's increasing influence in Central Asia.

The Kashagan oil field is the largest oil discovery in fifty years. Together with its neighboring fields in the North Caspian Sea, Kashagan is estimated to have 35 billion barrels of oil reserves. Around 9 billion to 13 billion barrels are said to be recoverable.