Kashagan operator fails appeal on environmental audit resultsThe appeal board of the Astana court confirmed that the audit findings of the environmental department of the Atyrau region in Kashagan were valid."The appeal board ruled to overturn the prior decision of the Astana administrative court dated June 14, 2023, thereby restoring the environmental agency's instruction to address violations in certain areas. The defendants' appeal (the Ecology Department) has been granted, while the plaintiff's appeal (Kashagan operator, NCOC) has been dismissed,” presiding judge Damir Abdugaliyev said.The appeal board determined that the field operator had violated environmental regulations by not covering the top surface with a polymer film and by making major production changes without assessing their environmental impact or having a detailed plan.The appeal board also agreed with the ecologists' conclusion that the sulfur storage limits had been exceeded.“The amount of sulfur allowed to be stored each year cannot be added up over time,” the judge said.In 2022, the Atyrau Region's Ecology Department conducted an audit at Kashagan, which revealed that NCOC had surpassed sulfur storage limits by over 1.2 million tonnes. The department also noted that NCOC was not fully adhering to the environmental protection action plan: wastewater was discharged into an evaporation pond without proper treatment, and untreated raw gas was flared without environmental permits. These breaches could result in a fine of 2.3 trillion tenge for the company.NCOC contested the audit findings in court. In June 2023, the Astana court partially upheld the consortium's claim, disputing key aspects of the environmental audit. The court sided with NCOC on the sulfur storage issue and found the environmentalists' claim about the absence of additional purification filters unfounded.The Department of Ecology for the Atyrau Region lodged an appeal in September 2023 to contest the initial court ruling. In late November 2023, the appeal board of the Astana court opted to reopen the legal inquiry and carry out a second forensic examination in the dispute involving environmentalists and NCOC.During this litigation, Bloomberg, citing sources, reported that NCOC shareholders had warned Kazakhstan of potential international arbitration regarding the dispute. Alikhan Smailov, who was Prime Minister at the time, addressed these rumors, stating that the country was ready to resolve the matter amicably. He mentioned that an agreement had been reached with the consortium to remove sulfur from the deposit area and sell it.NCOC is owned by KMG Kashagan B.V. with 16.877%; Shell Kazakhstan Development B.V., Total EP Kazakhstan, Agip Caspian Sea B.V., and ExxonMobil Kazakhstan Inc. with 16.807% each; CNPC Kazakhstan B.V. with 8.333% and Inpex North Caspian Sea Ltd. with 7.563%.Kashagan is Kazakhstan's first offshore oil and gas field in the Caspian Sea. It is the largest international investment project in the country. Commercial operation at Kashagan began on November 1, 2016. The recoverable oil reserves of the Kashagan field are estimated to range between 9 and 13 billion barrels. (ICE ALMATY)

Fonte notizia: INTERFAX