Kazakhstan stops/have no guts/ to collect $5.06 bn. fines from Western oil giants over Kashagan field

Office of North Caspian Operating Company N.V. is seen in Atyrau

The office of North Caspian Operating Company N.V. (NCOC), the operator of Kashagan oil field, is reflected in the ice-covered Ural River in the city of Atyrau, western Kazakhstan, December 7, 2016. REUTER

Kazakhstan’s Ministry of Justice has suspended enforcement proceedings to ‌recover 2.3 trillion tenge ($5.06 billion) from the North Caspian Operating Company (NCOC) which runs the Kashagan oil field, Russia’s Interfax news agency reported.

NCOC, a joint venture between Shell (SHEL.L), opens new tab, TotalEnergies (TTEF.PA), opens new tab, ExxonMobil (XOM.N), opens new tab and China’s ⁠CNPC, among others, runs Kazakhstan’s offshore Kashagan field. It did not immediately reply to a request for comment.

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NCOC has been mired in a lengthy legal standoff with the Kazakh government, which accuses it of environmental violations related to sulphur storage, and has ordered NCOC to pay a large fine. NCOC ‌and ⁠its contractors reject the fine and the allegations behind it, and the case is currently being heard in international arbitration.

In July, Reuters reported that Kazakhstan had warned ⁠NCOC’s head that he faced criminal prosecution if the fine was not paid.

Kazakhstan produces around 2% of global daily ⁠oil supply. Critics and some international oil majors have accused Kazakhstan of seeking to increase ⁠its control over its oil industry via “resource nationalism”, an accusation Astana rejects.

Source :

Reuters