What is the amount and basis of the environmental fine imposed on NCOC, and what legal consequence has Kazakhstan threatened for non-payment?

Kazakhstan imposed an environmental fine of 2.3 trillion tenge ($4.92 billion) on the North Caspian Operating Company (NCOC) in 2023 for breaching sulphur storage limits at the Kashagan oilfield; according to a document reviewed by Reuters, Kazakhstan's justice ministry warned NCOC's managing director Giancarlo Ruiu of 'administrative and criminal liability for non-compliance' over the unpaid fine.

How has NCOC responded to the fine, and what is the current legal status of the dispute?

NCOC and its contractors reject both the fine and the allegations underlying it, and the case is currently being heard in international arbitration; NCOC maintains that the fine cannot be enforced while arbitration is ongoing.

Kazakhstan Warns Kashagan Operator Head of Prosecution Over Unpaid Fine

Jul 21, 2026

Kazakhstan warned the head of the Kashagan oilfield operator NCOC of possible criminal prosecution for non-payment of a $5 billion environmental fine. Major oil companies contest the fine via arbitration while authorities threaten enforcement measures.

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Kazakhstan Warns Kashagan Operator Head of Prosecution Over Unpaid Fine

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Kazakhstan Warns Kashagan Operator Head of Prosecution Over Unpaid Fine

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