Kazakhstan has initiated forced collection of a $4.9 billion fine from NCOC, operator of the Kashagan field. This was reported by Qazaqyia.kz citing Sputnik Kazakhstan.
According to the Ministry of Justice, the environmental fine was imposed for violating sulfur storage requirements. The company was required to voluntarily pay it by July 20.
The legality of the fine has been confirmed by Kazakh courts. On July 16, NCOC stated that the UNCITRAL arbitral tribunal had prohibited Kazakhstan from applying enforcement measures for this fine. However, the Kazakh Ministry of Justice said the arbitration decision does not prevent the collection of the environmental fine.
Kashagan is a major offshore oil and gas field located in the Kazakh sector of the Caspian Sea, about 80 km from the city of Atyrau. NCOC is a consortium comprising KazMunayGas, as well as major international oil and gas companies Eni, Shell, ExxonMobil, TotalEnergies, and other partners.