Kazakhstan’s Ministry of Ecology said a court in Astana has upheld a 2.4 trillion tenge environmental fine imposed on a consortium of major international oil companies. The entities, which are part of the North Caspian Operating Company (NCOC), are continuing to appeal the ruling, Bloomberg reported.
Supreme Court rejects appeal
The ministry told Bloomberg that the Supreme Court rejected an appeal involving 2.356 trillion tenge (approximately $5 billion) in fines levied against NCOC, the operator of the Kashagan oil field. The penalty stems from the alleged storage of excessive amounts of sulfur at the site.
Link to broader arbitration dispute
The sulfur-related fine may be connected to a broader $166 billion international arbitration case involving the Kashagan project. Kazakhstan is seeking to increase revenue from its natural resources and has filed claims against its joint venture partners in international arbitration.
