Chevron's project in Kazakhstan has faced new environmental allegations
Kazakhstan has been consistently taking a tougher stance toward international oil consortia over alleged environmental violations
The Tengiz field in Kazakhstan accounts for about 12% of Chevron's total global production / Photo: Pavel Mikheyev / Shutterstock.com
The operator of Kazakhstan’s largest oil field—Tengiz—has faced allegations from regional authorities regarding an alleged violation of waste storage regulations, Bloomberg reported. The project is managed by the joint venture Tengizchevroil, whose largest shareholder is the American giant Chevron.
Last month, the Atyrau Region’s Department of Ecology conducted an unscheduled inspection at the field, the Ministry of Ecology and Natural Resources of Kazakhstan told the agency. The inspection “revealed the accumulation of waste without an environmental permit establishing accumulation limits.” “Tengizchevroil” is contesting the results of the inspection through pretrial proceedings. The process of holding the company administratively liable has been suspended pending the outcome of the proceedings, the ministry said.
"Tengizchevroil," for its part, stated that it "conducts its operations within the framework approved by the relevant authorities."
In April, Tengizchevroil was fined 53.7 million tenge ($113,000) for exceeding pollutant emission standards.
Context
Kazakhstan, Europe’s second-largest oil supplier, has been consistently taking a tougher stance against international oil consortia over alleged environmental violations, according to Bloomberg. In 2023, Kazakhstan fined the operator of the massive Kashagan field $5 billion for exceeding sulfur storage limits. The project operator is the North Caspian Operating Company (NCOC) consortium, which includes the Kazakh state-owned company KazMunayGas, European firms TotalEnergies, Eni, and Shell, U.S.-based ExxonMobil, China’s CNPC, and Japan’s Inpex. The consortium denies any violations and has been contesting the fine for several years, while Kazakhstan continues to seek payment of the fine.
Chevron, which has been operating in Kazakhstan since 1993, owns a 50% stake in Tengizchevroil. The Tengiz field, on whose expansion investors have spent $48.5 billion, accounts for about 12% of Chevron’s total global production. Other shareholders in Tengizchevroil include Exxon Mobil (25%), KazMunayGas (20%), and Russia’s Lukoil (5%). The partners are currently negotiating with Kazakhstan to extend the license to develop the field beyond 2033.
This article was AI-translated and verified by a human editor
