Oil companies working in the Kashagan field received favorable interim rulings in two large arbitration cases against Kazakhstan government over environmental fines and tax claims, Bloomberg reported Friday, citing sources with knowledge of the matter.
These rulings do not end the arbitration, but they give the companies, including Eni (E), Shell (SHEL), Exxon Mobil (XOM), and TotalEnergies (TTE), a stronger footing in wider disputes with the government, the media outlet reported.
One arbitration panel decided Kazakhstan should not collect a $5 billion fine related to sulfur storage, while the case is under review, although the panel did not rule out the fine entirely.
The companies reportedly succeeded in preventing the government's tax authority from auditing the oil-profit share in a separate ruling, arguing that only the Energy Ministry has that authority.
Kazakhstan's claims against the consortium have grown to more than $160 billion, the report added.
Kazakhstan's Energy Ministry, the companies and North Caspian Operating, which operates the field, did not immediately respond to requests for a comment from MT Newswires. Minority stakeholders, Inpex and China National Petroleum, did not immediately respond to requests for a comment.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)
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