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Market Chatter: Kazakhstan Warns Kashagan Operator Over Unpaid $5 Billion Environmental Fine

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Kazakhstan has warned the head of the international consortium, The North Caspian Operating Company, developer of the giant Kashagan oilfield, of possible criminal prosecution over the non-payment of a nearly $5 billion environmental fine, Reuters reported Tuesday.

According to a document reportedly reviewed by Reuters, the justice ministry warned NCOC of potential administrative and criminal liability for failing to pay a 2.3 trillion Kazakhstani tenge ($4.90 billion) penalty imposed in 2023 over alleged sulfur storage violations.

NCOC reportedly rejected the allegations and said the fine cannot be enforced while arbitration is ongoing.

Kazakhstan's Ministry of Justice and NCOC did not immediately respond to requests for comment from.

(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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