Kazakhstan’s arbitration claims against the North Caspian Operating Company N.V. (NCOC), the international consortium operating the Kashagan oil field, have increased to $160 billion, according to a report by Bloomberg.
The claims, which recently rose from $150 billion to $160 billion, stem from the Kazakh government’s discovery of alleged corruption in certain deals related to Kashagan. The compensation amount could climb even higher, the news agency reported, citing its sources.
In April 2023, Bloomberg reported that Kazakhstan had initially filed a $13 billion lawsuit against NCOC, later raising the demand to $15 billion. The allegations centered on multinational companies allegedly breaching bidding procedures and failing to fulfill contractual obligations.
A year later, in April 2024, the media outlet revealed that Kazakhstan had significantly raised its arbitration claims against NCOC to $150 billion, seeking compensation for lost profits from potential oil sales. The Kazakh Energy Ministry has stated that the specifics of these arbitration disputes and claims “are not subject to disclosure,” emphasizing that this remains a strictly commercial dispute.
The NCOC consortium includes several key stakeholders: KMG Kashagan B.V. (16.877%), Shell Kazakhstan Development B.V. (16.807%), Total EP Kazakhstan (16.807%), Agip Caspian Sea B.V. (16.807%), ExxonMobil Kazakhstan Inc. (16.807%), CNPC Kazakhstan B.V. (8.333%) and Inpex North Caspian Sea Ltd. (7.563%).
Earlier this year the Atyrau Region Department of Ecology had fined NCOC $5.1 billion.
