Global energy giants Shell, Eni, Exxon, and Total had known for years about violations related to sulfur storage at the Kashagan field in northwestern Kazakhstan, but deliberately ignored the environmental risks to save money. As Bloomberg reports, citing internal correspondence, the NCOC consortium's management had been aware of the threat of fines since 2016, Forbes.kz reports.
The documents show that the partners weighed the cost of building processing plants against the risk of lawsuits. Ultimately, the shareholders decided that environmental costs would "too severely impact the profitability of the project," whose budget had already exceeded $55 billion. Eni, for example, considered sulfur exports unprofitable, while Shell warned of possible sanctions as early as 2019.
A strategy of ignoring regulations has led to the largest protracted conflict with the Kazakh government:
- Environmental fine: Potentially $5 billion.
- Arbitration claims: The total amount of claims against the Kashagan and Karachaganak operators (including allegations of inflated costs) reaches $160 billion.
- Profit manipulation: Authorities claim that investors are pocketing up to 98% of revenue due to inflated costs.
Experts note that this case has become a tool for pressuring the revision of production-sharing agreements. Legal proceedings are expected to last until at least 2028, creating serious reputational risks for Western corporations in the region.
CentralasianLIGHT.org
February 2, 2026