Kazakhstan’s Ministry of Justice has denied reports that the collection of a 2.3 trillion tenge (about $5 billion) environmental fine from NCOC, the operator of the Kashagan oil field, in favor of the state has been terminated.
«NCOC has currently appealed the actions of the state bailiff. Therefore, the Atyrau Region Specialized Inter-District Administrative Court has requested the enforcement proceedings,» the ministry said in a statement.
The ministry noted that, under subparagraph 13 of Article 42 of Kazakhstan’s Law «On Enforcement Proceedings and the Status of Enforcement Agents,» enforcement proceedings are suspended while the relevant materials are before a court, until the court returns them.
Therefore, efforts to collect the funds from NCOC on behalf of the state will continue in accordance with the procedure established by law.
Earlier reports of suspension
Earlier, the Telegram channel OilGasKZ reported, citing a response from the Ministry of Justice to an inquiry from Interfax-Kazakhstan, that enforcement proceedings against NCOC had been suspended.
The ministry had previously rejected reports that the U.N. Commission on International Trade Law (UNCITRAL) had prohibited Kazakhstan from enforcing the environmental fine against NCOC. It also noted that interim measures issued by a foreign commercial arbitration tribunal do not automatically take effect in Kazakhstan. Under the New York Convention, such rulings must first be recognized and enforced by Kazakhstan’s competent courts.
Kazakhstan expects payment
In June, Zhomart Aliyev, Kazakhstan’s vice minister of ecology and natural resources, said he believes the government will ultimately recover 2.356 trillion tenge in environmental fines from the consortium. He stressed that previous court decisions support the ministry’s assessment of the case’s likely outcome.
