The government of Kazakhstan has brought a legal action [14] for violation of environmental protection laws against the North Caspian Operating Company (NCOC [15]), the consortium leading development of the country's massive Kashagan [17] oil field, seeking $5.14 billion in fines. In the complaint filed late last month, the Ministry of Ecology & Natural Resources [16] cites storage of sulfur on site in excess of permitted limits, burning of crude gas on flares without a permit, improper discharge of wastewater, and other violations.
Kashagan is one of the largest oil-fields discovered on Earth over the past 40 years, with recoverable reserves estimated at up to 13 billion barrels. In 1997, a Production Sharing Agreement was signed between the Republic of Kazakhstan and the Offshore Kazakhstan International Operating Company (OKIOC) to run the NCOC. The consortium includes the Italian Eni [21], French Total [22], US-based ExxonMobil [23], Anglo-Dutch Shell [24], Chinese CNPC [25], Japan's Inpex [26], and KazMunayGas [18], the Kazakh national operator. (Jurist [19])
