Exxon blocks Kashagan settlement proposal over Kazakhstan's $5 billion fine
XOM•ExxonMobil blocked a proposal for Kashagan oil field partners to settle a disputed environmental fine of about $5 billion with Kazakhstan, Bloomberg News reportedly said. Exxon told Kazakhstan a potential $80 billion investment in the field would depend on resolving the dispute, the report said.
1. Settlement proposal blocked
ExxonMobil blocked a proposal for partners in Kazakhstan's Kashagan oil field to settle with the government over a disputed $5 billion environmental fine, Bloomberg News reportedly said, citing people familiar with the matter. Exxon was not in favor of the proposal and persuaded TotalEnergies to oppose it, the report said.
2. Dispute over the fine
The field's operating consortium includes Exxon, Shell, Eni and TotalEnergies. Kazakhstan accuses it of environmental violations related to sulphur storage. The government restarted enforcement action late last month to collect a 2.3 trillion tenge fine, reported as $5.22 billion.
3. Investment tied to resolution
Exxon told the Kazakh government that a potential $80 billion investment in the field would depend on resolving the dispute, the report said. The fine's status has become a central issue in talks over a proposed production expansion.
