AKIPRESS.COM - Kazakhstan’s sovereign wealth fund has offered Royal Dutch Shell the chance to buy a significant minority stake in national oil company KazMunayGaz KMGZ.KZ (KMG) to make its planned flotation more attractive to foreign investors, two sources familiar with the talks told Reuters.

State-owned KMG is the central Asian nation’s third largest oil producer and has stakes in all major Kazakh projects including the giant Kashagan oil field. It is Shell’s partner in several joint ventures.

Samruk-Kazyna, the Kazakh sovereign fund, plans to float KMG next year as part of the government’s privatization program.

The fund owns a 90 percent stake in the company and Kazakhstan’s central bank holds the remaining 10 percent.

The central bank took a stake after effectively printing $4 billion to help KMG pay off its debt after the oil price crash.

A source close to KMG said Shell has been offered the chance to buy a stake of up to 20 percent, which could include the central bank’s stake.

“The talks are under way,” the source said.