The Kazakh authorities intend to submit their claims to the arbitration courts of Geneva and Stockholm. The republican government accuses the leadership of foreign oil companies, including Exxon and Shell, of unauthorized cutting of a total of $16.5 billion in spending on the development of the Kashagan and Karachaganak oil and gas fields. informs Bloomberg agency, citing the source.
We are talking about the uncoordinated expenditures of the companies in the period of 2010-2018 in the Kashagan field, and the expenditures in the period of 2010-2019 in the Karachaganak field. The article states that through the lawsuit, the Kazakh authorities are trying to increase the oil revenues of the republic and to obtain the right to receive a larger share of the revenue from the fields in accordance with the provisions of the production sharing agreements.
“The Kazakh government is arbitrating companies that operate two large oil fields in the republic, with billions of dollars in revenue, among allegations of unauthorized spending. The government argues that the project partners should not cut $13 billion for Kashagan and $3.5 billion for Karachaganak.
Last month, the local government appointed arbitrators to oversee the Kashagan and Karachaganak cases in Geneva and Stockholm, respectively. At the same time, it is stated in the note that the oil companies against whom management charges have been brought have not yet appointed their arbitrators.
Companies that have invested more than $50 billion in the development of the Kashagan field, which include Shell Plc, Exxon Mobil Corp., national state-owned company KazMunayGas, Eni SpA and Total Energies SE. Partners in the Karachaganak field, led by Shell and Eni, have invested at least $27 billion in development.
April 2 Press Service of the Ministry of Energy of Kazakhstan (Minenergo) knowledgeable On the country’s intention to reduce oil production by 78,000 barrels per day from May until the end of 2023. Prior to that, the authorities of Russia and Saudi Arabia also announced their plans to reduce the volume of daily production of raw materials – we are talking about a reduction of 500 thousand barrels per country by the end of this year.