The operator of the Kashagan field said an international arbitration court has temporarily barred Kazakhstan from collecting an environmental fine of 2.3 trillion tenge (about $4.9 billion), reports Orda.kz.
Earlier, Kazakhstan's Ministry of Justice said the operator had to pay the amount by July 20. However, North Caspian Operating Company (NCOC) stated that the arbitration tribunal had issued an interim measure prohibiting authorities from taking any action to collect the fine until the proceedings conclude.
"NCOC and the project's participating companies do not recognize this fine or the allegations on which it is based. We will challenge them by all available means," the operator's statement said.
NCOC operates Kazakhstan's largest oil field, Kashagan. The consortium includes Shell, TotalEnergies, ExxonMobil, China's CNPC, and other international companies.
Kazakhstan is involved in several arbitration disputes with foreign oil companies. The authorities accuse them of environmental violations and failure to meet contract terms. In January, Kazakhstan secured a favorable ruling in an arbitration over Karachaganak, where it had sought about $4 billion.
In December 2022, the ecology department of Atyrau region inspected NCOC's operations. The company was accused of violating sulfur storage regulations, and a few months later a regional court imposed a fine of 2.3 trillion tenge. The appeals court upheld it. NCOC repeatedly challenged the fine, with the latest appeal heard in December 2025. The court rejected the company's claim, but the ruling has not yet entered into force. During the proceedings, the environmental claims became part of a broader case against NCOC and the operator of Karachaganak, Karachaganak Petroleum Operating (KPO). The state accuses them of improperly implementing production-sharing agreements signed in the 1990s.
Earlier, it was reported that Kazakhstan and NCOC are still disputing the timeline for maintenance of Kashagan.