Kazakh court reportedly rejects Kashagan oil operator's bid to block enforcement of $5 billion fine
XOM•A Kazakh court dismissed the Kashagan operator’s bid to overturn enforcement actions to collect an environmental fine of around $5 billion.
1. Court rejects challenge
A Kazakh court dismissed a lawsuit by North Caspian Operating Company (NCOC), the operator of the offshore Kashagan oilfield, seeking to overturn a decision to begin enforcement actions to collect an environmental fine of around $5 billion.
2. Dispute continues
The Kazakh government accuses NCOC of environmental violations related to sulphur storage. NCOC and its contractors reject the fine and the allegations, and the case is being heard in international arbitration. Kazakhstan’s Justice Ministry said in early September that enforcement proceedings had been temporarily suspended but that it still intended to collect the fine.
