Kazakhstan state energy firm KazMunayGas (KMG) will pay its portion of a disputed $5 billion environmental fine. The penalty targets the North Caspian Operating Company (NCOC) consortium for excessive sulfur storage at the Kashagan oil field.
KMG holds a 16.88% stake in the project and plans to meet a July 20 court-ordered payment deadline. This decision breaks ranks with international partners including Exxon Mobil, Shell, and TotalEnergies.
Exxon Mobil maintains a 16.81% stake and continues to deny all allegations of wrongdoing. The foreign partners are currently contesting the fine through international arbitration. KMG’s compliance complicates the legal strategy and increases pressure on the remaining consortium members.