KazMunaiGas Exploration Production (KMG EP), the London-traded subsidiary of Kazakhstan’s national oil company, plans to buy stakes in three Kazakh production units and bonds from its parent company for $2.25 billion, the oil producer said in a statement.

KMG EP will buy 50 percent of Kazakhoil Aktobe LLP for $350 million, 50 percent of Mangistau Investments BV for $330 million, and 51 percent of Kazakhturkmunai Ltd for $70 million.

The acquisition of the stakes will increase KMG EP’s oil production by 27 percent, and will boost its proven and probable reserves by 406 million barrels. KMG EP’s reserves are around 2.2 billion barrels, and last year it produced 84.3 million barrels of crude, at an average of 232,000 per day.

KMG EP also said in a statement it “intends to purchase” KZT220 billion ($1.5 billion) of three-year bonds that will be issued by KazMunaiGas, the parent company.

It reportedly plans to use the bonds to pay for future acquisitions of the parent’s assets, Bloomberg reported citing Alexander Gladyshev, head of investor relations. The parent company will offset future dividends from the unit against outstanding bonds.

Analysts lauded the plan saying the deals signaled the company’s commitment to deliver on promises made during its initial public offering in 2006 to grow its asset base using parent company KazMunaiGas’ preferential rights to asset sales in the country.

KazMunaiGas, the national oil company, also said it plans to transfer a number of new exploration blocks to KMG EP later this year.