KPO fined $52 mln for pollution, consortium to dispute decision
URALSK. April 4 (Interfax) - The special interregional economic court of the Western Kazakhstan Region has decided to fine international consortium Karachaganak Petroleum Operating (KPO, the developer of the Karachaganak field in the Western Kazakhstan region) over 7.75 billion tenge (over $52 million) for polluting the environment, the court told Interfax.
The court said that the consortium had been fined after it willingly emitted 30 tonnes in harmful waste from hydrochloric treatment operations at wells in 2010
The court has order that KPO pay 7.5257 billion tenge as restitution for harm caused by pollution and a state fine worth 225.77 million tenge.
However, KPO disagrees with the court's decision and has submitted an appeal to a higher judicial authority.
Furthermore, a spokesperson for the court said that it recently received a lawsuit against KPO from the Zhaiyk-Caspian environmental department for the restitution of over 178 million tenge for environmental damages. The case has been accepted and a court hearing has been scheduled.
The Karachaganak oil and gas condensate field is one of the largest in the world. Its reserves are estimated at 1.2 billion tonnes of oil and 1.35 trillion cubic meters of gas. The field is operated by Karachaganak Petroleum Operating B.V. (KPO), an international consortium comprised of BG Group (32.5%), ENI (32.5%), Chevron (20%) and Lukoil (15%). On December 14, 2011, the Kazakh government and KPO shareholders signed an agreement in accordance with which Kazakhstan will acquire a 10% stake in the project. This agreement should come into force at the end of the first half of 2012.