Kazakhstan’s energy minister announced Tuesday that arbitration procedures have been initiated with oil majors developing the country’s Kashagan and Karachaganak oilfields for over $16 billion in charges deducted as part of profit-sharing agreements.
Speaking to the reporters, Kazakstan’s Energy Minister Almasadam Satkaliyev said ‘these lawsuits have been filed in the interest of the people of Kazakhstan.’
The offshore Kashagan field is one of the most significant finds in the past two decades and has been developed by the North Caspian Operating Company, which includes Eni, Shell, TotalEnergies, ExxonMobil, KazMunayGas, Inpex and CNPC.
The Karachaganak field in western Kazakhstan, meanwhile, is run by Eni, Shell, and KazMunayGaz along with Chevron and Lukoil.
As a member of the Organization of Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, Kazakhstan has an estimated 30 billion barrels of oil reserves. With 172 oilfields, Kazakhstan accounts for 3% of global oil reserves, ranking it among the top 15 countries in terms of oil reserves.
