The NCOC appeal has temporarily suspended enforcement actions, but Kazakhstan’s authorities say they intend to continue the legal proceedings and seek the recovery of funds for the state.
According to Reuters, Kazakhstan’s Ministry of Justice said on September 9 that enforcement actions against the North Caspian Operating Company (NCOC), the operator of the Kashagan offshore oil field, have been temporarily suspended due to the company’s appeal. The ministry stressed that the case has not been terminated and that efforts to recover the funds will continue in accordance with the law.
The dispute over Kashagan has been ongoing for several years and stems from Kazakhstan’s claims that NCOC failed to comply with environmental requirements, particularly those related to the handling of sulfur generated during oil production and processing. The Kazakh government is seeking around $5 billion from the operator, while NCOC denies the violations and is challenging the claims in court.
The Ministry of Justice said the suspension of enforcement actions will remain in place while the appeal is being considered. The ministry also stated that it intends to continue efforts to recover funds that, under the authorities’ decision, should be paid to the state.
NCOC is a consortium comprising Shell, TotalEnergies, ExxonMobil and China’s CNPC.
The company has not yet provided a new comment on the situation, but it has previously denied environmental violations and challenged the fine.
In July, Kazakhstan warned NCOC’s management that it could face criminal prosecution if the funds were not paid. The case has drawn attention from international oil companies and sparked discussions about so-called resource nationalism — an effort by the state to strengthen control over strategic natural resources. Kazakhstan rejects such accusations.
Kashagan is one of Kazakhstan’s largest oil fields, while the country accounts for around 2% of global daily oil production.
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