Oil and Gas Companies Fined 50 Billion Tenge in Kazakhstan

Companies producing hydrocarbons in Kazakhstan have been fined a total of 50 billion tenge for violating contract terms — nearly 40% of that amount was imposed last year, Orda.kz reports.

According to the Ministry of Energy, Kazakhstan currently has 327 active hydrocarbon subsoil use contracts, 182 of which are at the production stage, with the remainder covering exploration and development. In 2024 alone, companies producing oil and gas in Kazakhstan—or preparing to do so—were fined 19 billion tenge.

In practice, however, subsoil users have paid only one billion tenge so far—just 2% of the total fines and 5.2% of those assessed in 2024. The ministry did not clarify whether this figure refers exclusively to payments from last year.

In total, more than 160 notices of violations have been issued, and contracts with companies that systematically fail to comply are being terminated.

Over the first nine months of 2025, 11 subsoil use contracts were terminated, the Ministry of Energy stated.

The most high-profile case remains the fines levied against the NCOC consortium. Kazakhstan lost its case to Kashagan investors — yet still insists on collecting four billion dollars.

Original Author: Nikita Drobny