A consortium including Shell, TotalEnergies, and ExxonMobil faces a $4.9 billion environmental fine from the Kazakh government. The Kazakhstan Justice Ministry set a July 20 deadline for payment before beginning compulsory collection.
The penalty targets the North Caspian Operating Company (NCOC) for allegedly storing excessive sulfur at the Kashagan oilfield. NCOC and its international partners reject the allegations and have initiated international arbitration to contest the fine.
An arbitration tribunal issued a restraining order to prohibit Kazakhstan from enforcing the penalty during the proceedings. However, the government maintains that the arbitration does not prevent the enforcement of its domestic court ruling.