ASTANA – Partners in Kazakhstan’s largest Kashagan oil field have won a case in a local court over a potential environmental fine that could have exceeded $4 billion, Bloomberg reported on Aug. 1, citing the venture’s operator.
Kashagan. Photo credit: KMG
Kazakhstan previously sought to fine the venture partners 2.3 trillion tenge (approximately US$4.2 billion at current exchange rates).
The $55 billion Kashagan development in the Caspian Sea has been dogged by delays and cost overruns. Kazakh authorities have been seeking revenues from the venture and previously launched an international arbitration case seeking over $160 billion in damages, citing lost revenue, environmental violations, and alleged corruption.
In 2024, venture partners including Eni SpA, Shell Plc, Exxon Mobil Corp. and TotalEnergies SE offered a $110 million package in social investments over two years to help resolve the sulfur dispute, as well as proposed to support liquefied petroleum gas supply and launch a multimillion-dollar social development fund.
