Kazakh court rejects bid to block enforcement of $5 billion Kashagan fine
The lawsuit was filed by the operator of Kazakhstan's Kashagan offshore oilfield. The case involves an environmental fine tied to sulphur storage and is being heard in international arbitration.
A Kazakh court has thrown out a lawsuit by the operator of Kazakhstan's offshore Kashagan oilfield that sought to reverse a decision to start enforcement actions to collect an environmental fine of around $5 billion, Interfax reported on Sept 28. The North Caspian Operating Company (NCOC) has been locked in a long-running dispute with Kazakhstan's government, which says the company breached environmental rules tied to sulphur storage and imposed the fine. NCOC, which includes Shell, Eni, TotalEnergies and Exxon Mobil, and its contractors deny the penalty and the allegations behind it. The dispute is now being heard in international arbitration.
Kazakhstan's Justice Ministry said in early September that enforcement proceedings had been temporarily suspended, but that it still intended to collect the fine. Kashagan is one of Kazakhstan's largest oilfields.