Kazakhstan takes global majors to court over oilfield revenues
- By AFP -
- Apr 11, 2023
ASTANA: Kazakhstan on Tuesday said it had begun international arbitration court proceedings against energy majors including ExxonMobil and Shell over $16.5 billion (15.2 billion euros) in costs deducted from the revenues from two oilfields.
The government “has begun international arbitration against the Karachaganak and Kashagan (operating) companies,” Energy Minister Almasadam Satkaliev was quoted by the official news agency Kazinform as saying, adding that “the sums are $3.5 billion and $13 billion”.
The vast Kashagan field, which lies in the north of the Caspian Sea, is run by the North Caspian Operating Company consortium made up of KazMunayGaz, Eni, ExxonMobil, Royal Dutch Shell, TotalEnergies, China National Petroleum Corporation and Inpex.
Eni, Shell and KazMunayGaz also operate the Karachaganak field in western Kazakhstan, along with Chevron and Lukoil.
The operating companies have been able to deduct certain costs from revenues before dividing it with the government under production sharing agreements.