Astana Court Rules Against NCOC
Photo: Elements.envato.com, ill. purposes
A court in Astana has ruled against North Caspian Operating Company (NCOC), operator of the Kashagan oil field, reports Orda.kz.
The January 6 decision requires NCOC to pay more than 3.6 billion tenge in damages to the state.
The Western Interregional Department of the State Inspectorate in the Oil and Gas Complex, which operates under the Ministry of Energy, initiated the lawsuit. The Ministry was a third party.
The Ministry of Energy structures demanded that NCOC compensate the state for damages because the consortium regularly flares gas.
Per Kazakhstan's legislation, this is prohibited, except in emergencies.
The court agreed that NCOC's actions had harmed the country's financial interests.
The ruling breaks down into several payments:
- 2.8 billion tenge in primary compensation
- 726.9 million tenge in additional compensation
- 73.8 million tenge for state duties
NCOC has a one-month window to appeal the decision.
This case represents several ongoing legal disputes between Kazakh authorities and the Kashagan field's foreign investors.
Despite Energy Minister Almasadam Satkaliyev's hopes to resolve disagreements with NCOC by the end of 2024, conflicts remain unresolved.
Original Author: Nikita Drobny
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