Kazakhstan expects preliminary results from Kashagan shareholder arbitration in late autumn - Energy Minister
ASTANA. Sept 25 (Interfax) - Preliminary results from the international arbitration involving Kashagan's shareholders should be released in the late autumn, Kazakh Energy Minister Almasadam Satkaliyev said.
"The review of our arguments is currently underway, and we anticipate preliminary results in the second half of autumn," Satkaliyev told reporters when asked about the status of the arbitration with Kashagan's shareholders.
The international arbitration court began hearing cases related to claims by the Kazakh government against the operators of the country's largest oil and gas fields, Karachaganak and Kashagan, in the summer of 2024.
Kazakhstan's government has filed lawsuits against the shareholders of North Caspian Operating Company (NCOC), which operates the Kashagan field, and Karachaganak Petroleum Operating (KPO), the developer of Karachaganak, seeking $16.5 billion in damages for the country's citizens. Bloomberg sources indicate that the lawsuits are based on claims of unauthorized expenses, with the government arguing that project partners should not deduct $13 billion in expenses for Kashagan and $3.5 billion for Karachaganak.
In April, Bloomberg, citing sources, reported that Kazakhstan has increased its arbitration claim against NCOC to over $150 billion. This includes $138 billion for oil production promised but not delivered.
The shareholders of the NCOC consortium, the operator of Kashagan, are KMG Kashagan B.V. (16.877%), Shell (SPB: RDS.A) Kazakhstan Development B.V. (16.807%), Total EP Kazakhstan (16.807%), AgipCaspian Sea B.V. (16.807%), ExxonMobil Kazakhstan Inc. (16.807%), CNPC Kazakhstan B.V. (8.333%) and Inpex NorthCaspian Sea Ltd. (7.563%).
Kashagan is the first offshore oil and gas field in Kazakhstan's sector of the Caspian Sea and the largest international investment project in the country. Its recoverable reserves are estimated to be between 9 billion and 13 billion barrels of oil. Commercial production began on November 1, 2016. In 2023, the field produced 18.8 million tonnes of oil.