Ifax reports that Kashagan Oilfield Operator ordered to pay $4.9 Billion environmental fine

Interfax reported that Kazakhstan's Justice Ministry said that the operator of the?Kashagan oilfield is required to pay an environmental fine of 2.3 trillion tenge ($4.89 billion) by July 20. However, the company has filed a claim for arbitration against the penalty.

Interfax reported that Daniyel Vaisov, deputy minister of justice in Kazakhstan, said the arbitration was being held in Washington D.C.

The North?Caspian Operating Company, which is Kashagan’s operator, is a joint-venture between Shell, TotalEnergies,?ExxonMobil, and China’s CNPC. NCOC didn't?immediately respond to a comment request.

Vaisov was quoted by Interfax as saying Astana would take enforcement measures if the North Caspian Operating Company did not pay.

Kazakhstan has entered into arbitration proceedings with oil companies from around the world that are based in Central Asia. The country produces 2% of the daily supply of oil in the world.

Kashagan has been dubbed one of the world's largest oilfields in recent decades. The recoverable reserves of the oil field range between 9 billion and 13 billion barrels. Production began in 2016.

(source: Reuters)