Kazakhstan threatens prosecution of Kashagan oilfield operator over $5 bn fine

Kazakhstan’s Justice Ministry warned Giancarlo Ruiu, managing director of the North Caspian Operating Company (NCOC), that he could face criminal liability for the consortium’s failure to pay an environmental fine of 2.3 trillion tenge (about $4.9 billion). The fine, issued in 2023, relates to breaches of sulphur storage limits at the offshore Kashagan field, Kazakhstan’s second‑largest oilfield that produces roughly 430,000‑450,000 barrels per day.

The consortium developing Kashagan – which includes Shell, Eni, TotalEnergies and Exxon Mobil – argues the fine cannot be enforced while arbitration over the case is ongoing. Kazakhstan said NCOC could voluntarily pay the fine by the following Monday; otherwise enforcement measures and an additional 10 % fee may be imposed. Critics have accused Astana of “resource nationalism,” a claim the government rejects.

The dispute highlights tensions between the Kazakh state and major international oil firms over environmental compliance and control of the country’s oil resources.