A Kazakh court slapped a $21 million environmental fine on a group of companies led by BG and Eni which are developing the Karachaganak gas condensate field, an asset eyed by the government, prosecutors said today. Kazakhstan and the operators of Karachaganak have been in talks since last year after the companies accused the government of levying extra duties on them. Karachaganak is Kazakhstan's main gas producer and holds large gas condensate reserves.
Kazakh state energy company KazMunaiGas said this month it was interested in acquiring a stake in Karachaganak, the only large upstream project in the central Asian state in which it is not involved. The prosecutor general's office said today a regional court in western Kazakhstan had fined the Karachaganak venture for environmental violations such as excessive waste dumping dating back to 2008. "The total damage incurred ... was 3.09 billion tenge ($21 million)," Reuters quoted as saying in a statement. The venture, Karachaganak Petroleum Operating, could not be reached for comment. Apart from BG and Eni, its shareholders are Russia's Lukoil and US company Chevon.
The Kazakh government has sought to strengthen its role in the key energy sector in the last few years, acquiring stakes in large ventures run by foreigners, sometimes after accusing them of breaching contracts or damaging the environment.
