Kazakhstan’s arbitration claims against a group of international oil majors that developed the Kashagan field escalated above $160 billion after the country alleged some deals were tainted by corruption, according to people familiar with the matter.
These initiatives make Kazakhstan one of relatively few countries in the world able to attract strong investment interest both from international oil companies and local players.
If agreed, the settlement would help to open the way for an expansion of the Kashagan oil development, including construction of new gas-processing plants needed by the government, the people said.
International oil companies are searching for a way to settle a pair of multibillion dollar disputes with the government of Kazakhstan over operations at major oil fields, according to people familiar with the matter.
The companies operating two major oil fields in Kazakhstan are being taken to arbitration by the nation’s government, with billions of dollars of revenue at stake amid allegations of unapproved spending, according to people familiar with the matter.
The Kashagan oil field has started commercial output, according to Kazakhstan's energy minister.
Production resumed today from the giant, $50billion Kashagan oil and gas field in the Caspian Sea, Kazakhstan’s energy ministry said in a statement.
France's Total does not expect much oil output, if any, from the giant Kashagan oilfield in Kazakhstan this year and it is awaiting results of further analyses to assess the costs and delays facing its consortium partners.