$13 billion Kashagan dispute: Kazakhstan rejects proposals from oil giants - media

ASTANA, August 24 - Sputnik. The Kazakh Energy Ministry has told partners in NCOC, which develops the Kashagan oil field, that it will seek arbitration in the $13 billion dispute, Bloomberg writes.

According to the publication, the Department of Energy rejected an offer to waive its claims in exchange for investment commitments, which was a blow to large international companies.

What did the Ministry of Energy of Kazakhstan say?
The press service of the Ministry of Energy declined to comment, saying that "arbitration is confidential."

Dispute over Kashagan and Karachaganak
Recall that in April it became known that the government of Kazakhstan filed a lawsuit against oil companies that are developing at Kashagan and Karachaganak.

They are accused of unauthorized spending. The amount of claims, as reported by the Minister of Energy, is $13 billion for Kashagan and $3.5 billion for Karachaganak.

Also, partners in Kashagan face a $5.1 billion fine for violating environmental standards for sulfur storage.

Key partners in Kashagan: Shell Plc, Exxon Mobil Corp., Eni SpA and TotalEnergies SE.

Key partners in Karachaganak: Shell and Eni.