Kazakhstan resumes $5.22 billion fine collection from Kashagan operator

Kazakhstan has resumed enforcement proceedings to collect a 2.3 trillion tenge ($5.22 billion) environmental fine from the North Caspian Operating Company (NCOC), the consortium operating the Kashagan oil field.

The collection process, which had been paused for three weeks due to a legal challenge regarding enforcement procedures, was reactivated on September 29 following a court ruling that rejected NCOC’s attempt to overturn the proceedings. The fine originates from a 2022 environmental inspection of onshore facilities in the Atyrau Region, which alleged that more than 1.7 million metric tons of sulfur had accumulated at the Bolashak processing complex, exceeding the permitted limit of 730,000 tons.

NCOC, a joint venture including Shell, TotalEnergies, ExxonMobil, and China's CNPC, continues to reject both the allegations and the penalty. The company stated it is contesting the matter through all available legal channels. Kashagan is one of the world's largest recent oil discoveries, with estimated recoverable reserves of 13 billion barrels.