Bloomberg News reports that energy firms could be facing a $4 billion payout if they lose the Karachaganak Arbitration.

Bloomberg News, citing sources familiar with the situation, reported that an international consortium working on the Karachaganak oil field lost a?arbitration suit brought by Kazakhstan. They could be liable for compensation of up to $4?billion, Bloomberg News said.

The oil project in Kazakhstan is run by a consortium that includes?Eni, Shell and other partners. Each of them holds a stake of 29.25%. Chevron has 18% of the project, Lukoil 13.5% and KazMunayGaz 10%.

The court hasn't yet determined the final amount that the consortium must pay.

Bloomberg reported that external legal advice received by Kazakhstan indicated the arbitral ruling would mean the Karachaganak partners will have to return between $ 2 billion and $4 billion.

Bloomberg reported that the'mechanism of repaying the money' could lead to a 'change in the oil distribution formula within the field production sharing contract.

Chevron's spokesperson declined to comment, as the dispute is still ongoing. Shell, Eni Lukoil, KazMunayGas and KazMunayGas didn't immediately respond to requests for comments.

(source: Reuters)