The specialized environmental prosecutor’s office of the West Kazakhstan region has fined Karachaganak Petroleum Operating (KPO) nearly $1.4 million for exceeding emissions limits, according to a statement published on the agency’s website.
KPO, the consortium responsible for developing Kazakhstan’s Karachaganak oil field, reportedly released 264 tons of pollutants into the environment above the legally established quotas.
This fine comes despite KPO’s ongoing reports on its environmental, social and governance (ESG) initiatives. The company has frequently highlighted efforts to reduce carbon dioxide emissions. In 2019, KPO invested $25 million in sensor systems designed to monitor emissions more accurately.
According to its 2023 disclosures, KPO cut emissions by 2,400 tons through the use of a surface pump and by an additional 530 tons via hydrocarbon-based fluids used to enhance reservoir performance. The company reported achieving a carbon dioxide emissions rate of 65 tons per 1,000 tons of production, which is 14% below European targets and 44% below global averages.
KPO is jointly owned by Britain’s Shell (29.25%), Italy’s Eni (29.25%), U.S.-based Chevron (18%), Russia’s Lukoil (13.5%) and Kazakhstan’s state-owned KazMunayGas (10%).
