Kazakhstan has suspended enforcement measures to collect a $5 billion fine from North Caspian Operating Company (NCOC), the operator of the Kashagan oil field. This is reported by foreign media with reference to the government's website.
The Ministry of Justice of Kazakhstan has suspended enforcement proceedings on an environmental claim following an appeal by the NCOC in the Kazakhstan Administrative Court.
The fine was initiated based on the results of an audit conducted by the Department of Ecology in 2022. According to the environmental department, the volume of sulfur in Kashagan significantly exceeded the established limit and amounted to 1.7 million tons against the permitted 773 thousand tons.
The decisions of the Kazakh courts have been repeatedly reviewed, starting in 2023. At the end of August 2025, the fine was repeated, and in February 2026, the consortium involved in the development of the field initiated international arbitration proceedings against Kazakhstan, which reached several legal platforms at once, including procedures under the UNCITRAL and bilateral investment agreements of Kazakhstan with France and the Netherlands.
The Kashagan project is operated by the NCOC consortium, which includes KMG Kashagan B.V. (16.88%), Shell Kazakhstan Development B.V., Total EP Kazakhstan, AgipCaspian Sea B.V and ExxonMobil Kazakhstan Inc. with 16.81% each. CNPC Kazakhstan B.V. owns a stake of 8.33%, and 7.56% belongs to Inpex NorthCaspian Sea Ltd.
The Kashagan offshore field is located in the northern part of the Caspian Sea and is one of the largest fields in the world with reserves of 9 to 13 billion barrels of oil. Oil production began in September 2013, but was halted in October 2013 due to a gas leak from the pipeline. The restart of the field and the start of commercial production took place in the fall of 2016.
