Wed Sep 25 09:32:37 UTC 2024: ## Kazakhstan Expects Ruling on Billion-Dollar Oil Field Disputes by December
**ALMATY** – Kazakhstan is expecting preliminary results from its multi-billion dollar arbitration proceedings against international oil companies by December, according to the country’s energy minister.
The Central Asian nation launched claims last year against companies developing the Kashagan and Karachaganak oilfields, seeking $13 billion and $3.5 billion respectively, citing disputed costs.
Kazakhstan has a history of disputes with foreign companies over oil and gas projects, leading to accusations of “resource nationalism.” The government has countered these claims, asserting its aim is to control inflated costs by Western majors.
The Kashagan field, one of the world’s largest oil discoveries, is being developed by a consortium including Eni, Shell, TotalEnergies, ExxonMobil, KazMunayGaz, Inpex and CNPC. The consortium, known as the North Caspian Operating Company (NCOC), has invested over $50 billion in the project.
Energy Minister Almasadam Satkaliyev stated that the arbitration proceedings focus on the execution of the production-sharing agreement for Kashagan and Karachaganak. He emphasized that the details of the claims remain confidential.
In previous years, Kazakhstan has reached settlements with companies developing the Karachaganak field, including a $1.9 billion agreement in 2020.
The landlocked country views the Kashagan field as crucial for its future prosperity and has expressed concerns over cost overruns and development delays. Production at the field reached approximately 380,000 barrels per day last year.
Separately, the minister reported that Kazakhstan’s oil exports to Germany via the Druzhba pipeline are expected to reach 1.2 million metric tons (24,000 barrels per day) this year. Germany is seeking to double its imports to 2.5 million tons per year.
Kazakhstan’s oil exports have increased following Western sanctions against Russia over the Ukraine conflict. While maintaining its alliance with Moscow, Kazakhstan has not taken sides in the war or supported Russia’s territorial claims. Germany has expressed interest in expanding trade with Kazakhstan while ensuring it does not circumvent sanctions against Russia.
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