Media: Kazakhstan wins international arbitration case over largest oil & gas field

Kazakhstan has won an international arbitration case over Karachaganak, Bloomberg reports, citing a source.

The court has not yet determined the exact amount, the article notes, but external legal advisors estimate it could reach up to $4 billion, Caliber.Az reports, citing Sputnik Kazakhstan.

The largest shares in the Karachaganak project belong to Eni and Shell.

“Judging by the publications, this is very good news, very encouraging,” said Kazakhstan’s Energy Minister Erlan Akkenzhenov in response to a report about the country’s arbitration victory over Karachaganak, published by Bloomberg on January 26.

Akkenzhenov cannot confirm or deny Bloomberg’s report due to confidentiality.

Recall that in 2023, the Kazakh government filed a lawsuit against the Karachaganak developers over cost deductions: the initial claim amounted to $3.5 billion but later grew to $6 billion after additional claims.

The operator of the oil and gas project is a consortium led by Eni and Shell, each holding a 29.25% stake. Other partners include Chevron with 18%, Lukoil with 13.5%, and KazMunayGas with 10%.

Karachaganak is Kazakhstan’s largest oil and gas field.

By Khagan Isayev