Kazakhstan resumes enforcement of 2.3 trillion tenge Kashagan fine against NCOC

September 30, 2026 at 05:48 PM2 min

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Kazakhstan has resumed enforcement of a 2.3 trillion tenge fine against the North Caspian Operating Company (NCOC) for sulfur storage violations at the Kashagan oilfield. The Atyrau court rejected all five claims filed by NCOC against the enforcement proceedings. The consortium, which includes Shell, TotalEnergies, ExxonMobil, CNPC, KazMunayGas, Eni, and Inpex, disputes the fine and says it will appeal.

Key Facts

The Atyrau court rejected all five claims filed by NCOC against the enforcement proceedings, including lifting the arrest of property and transport and canceling the ban on transactions.
The fine amounts to 2.3 trillion tenge, imposed for storing 1.7 million tons of sulfur against a permitted volume of 773,000 tons.
NCOC shareholders include Shell, TotalEnergies, ExxonMobil, CNPC, KazMunayGas, Eni, and Inpex.
Kashagan's recoverable reserves are estimated at 13 billion barrels, with total project investment of about $60 billion.
NCOC retains the right to appeal to the Atyrau Regional Court.

Court Ruling

The Atyrau court rejected all five claims filed by NCOC against the enforcement proceedings. NCOC had sought to cancel the initiation of enforcement, lift the arrest of real estate and transport, and revoke the ban on transactions. The court returned the documents and refused the consortium on all points, allowing enforcement to continue. NCOC can still appeal the decision to the Atyrau Regional Court.

Dispute Background

The conflict dates back to 2022, when environmentalists found 1.7 million tons of sulfur stored at Kashagan against a permitted volume of 773,000 tons. NCOC insists it operated within its permits. In summer 2026, the state moved to compulsory measures after the consortium failed to pay the fine voluntarily. In July, the Ministry of Justice arrested NCOC's property and transport, and in September the procedure was temporarily suspended.

Kashagan Significance

Kashagan is one of the largest oil fields discovered in recent decades, with recoverable reserves estimated at 13 billion barrels. Total investment in the project is about $60 billion. Kazakhstan accounts for approximately 2% of global oil production. In parallel, Kazakhstan is conducting arbitration proceedings with international oil companies over several fields, accusing them of environmental violations and corruption.