ExxonMobil Corp. has reportedly blocked a proposed settlement with the Kazakh government over a $5.2 billion environmental fine. The penalty relates to sulfur storage at the giant Kashagan oil field and was upheld by a local court in June.
Bloomberg reported that ExxonMobil’s opposition was enough to block the settlement. The report also says the company has linked a potential new $80 billion investment in expanding Kashagan production to resolving the fine, making the penalty a key issue in negotiations with the government.
Eni SpA is a partner in the field’s consortium, alongside ExxonMobil, Shell Plc and TotalEnergies SE.