Kazakhstan: Authorities Reassert $4 Billion Environmental Fine for Kashagan — Bloomberg
Photo: NCOC.KZ
Kazakhstan’s Ministry of Ecology has notified foreign investors in the Kashagan oil field that they must pay a multi-billion-dollar fine for environmental violations within 40 days, Orda.kz reports, citing Bloomberg.
This comes despite the investors’ earlier announcement that they had won an appeal against the penalty.
The dispute centers on the storage of sulfur. In early August, NCOC investors said a court had confirmed the legality of their practices. However, the ministry has now reiterated that the fine — estimated at about $4 billion at the current exchange rate — remains in force.
According to Bloomberg, oil companies have 10 days to file an appeal. If they proceed, the case will continue; if not, payment will be required within 30 days.
The NCOC consortium, which brings together major foreign investors at Kashagan, has described the fine as unprecedented and inconsistent with both national and international law, arguing it breaches Kazakhstan’s production-sharing agreement.
It remains unclear on what grounds the Kazakh government is insisting on the payment. Neither the Ministry of Ecology nor the Ministry of Energy commented for Bloomberg.
Previously, NCOC had already paid 3.6 billion tenge to the state for environmental violations.
Original Author: Oksana Matvienko
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