Kashagan oilfield operator ordered to pay $4.9 billion environmental fine, Ifax reports
XLE•Kazakhstan orders $4.9 billion environmental fine
ALMATY, July 14 (Reuters) - Kazakhstan's Justice Ministry said the operator of the Kashagan oilfield must pay an environmental fine of 2.3 trillion tenge ($4.89 billion) by July 20, but that the company has filed an arbitration claim challenging the penalty, Interfax reported on Tuesday.
Interfax quoted Kazakh deputy justice minister Daniyel Vaisov as saying that the arbitration is being conducted in Washington, D.C.
Operator says it will face enforcement if it does not pay
Kashagan's operator, the North Caspian Operating Company (NCOC), is a joint venture of Shell SHE.L, TotalEnergies TTEF.PA, ExxonMobil XOM.N and China's CNPC, among others. NCOC did not immediately reply to a request for comment.
Interfax cited Vaisov as saying that Astana will take enforcement measures against the North Caspian Operating Company if it does not pay.
Kazakhstan is engaged in arbitration proceedings with international oil majors working in the Central Asian country, which produces around 2% of the world's daily oil supply.
Kashagan is considered one of the largest oilfields discovered worldwide in recent decades. Its recoverable reserves range from 9 billion to 13 billion barrels of oil, with production having begun in 2016.
($1 = 470.0800 tenge)
