Kazakhs Mull Directly Pursuing Oil Majors for $5 Billion Fine

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Or sign-in if you have an account.(Bloomberg) — Kazakhstan is considering the option of collecting a disputed $5 billion environmental fine by going directly after the oil majors behind the Kashagan venture, the Justice Ministry said. THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountEnforcement proceedings, which were initiated by a bailiff’s order on Tuesday, can potentially include foreclosure on the property and funds of the international partners in Kashagan, the Astana-based ministry said by email. That option “is currently being considered,” the ministry said. Kashagan’s operator, the North Caspian Operating Co., is a joint venture between Eni SpA, Shell Plc, TotalEnergies SE, ExxonMobil Holding Corp., Inpex Corp. and China National Petroleum Corp. Several of them are stakeholders in other major energy projects in the country, such as the Tengiz and Karachaganak fields. Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againThe developers of Kashagan have long contested the fine of 2.356 trillion tenge, which was imposed on the project for storing too much sulfur at the field. After several years of legal wrangling, an Atyrau-based court upheld the penalty in a ruling on June 19. However, the field’s operator continues to dispute the fine in a pair of international arbitrations. NCOC and the international companies “consider the sulphur fine to be without any basis and are contesting it by all available means,” the company said on July 23.State bailiffs also have the right to initiate suspension of NCOC’s license and sent requests to get data from authorized bodies about the permits, the ministry said in the email.READ: Oil Majors Saw Kazakh Sulfur Risk Years Before $5 Billion FineState-run KazMunayGas, which is also a partner in NCOC, has decided to pay its part of the fine, people familiar with the matter told Bloomberg this week. The sulfur fine is connected to a wider $166 billion international arbitration centered around Kashagan. Most of that amount relates to claims for lost revenue by Kazakhstan, the second-largest supplier to Europe, but also includes environmental violations and contracts that the state alleges were tainted by corruption.This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.