Hague Court Rejects Part of Kazakhstan's Kashagan Claims Against Oil Consortium

The Permanent Court of Arbitration in The Hague has rejected one of Kazakhstan's multibillion-dollar claims over the development of the Kashagan oil field, one of the largest deposits in the Caspian Sea. The court ruled that claims over $12 billion in disputed costs, allegedly incurred between 2011 and 2015, were filed after the statute of limitations had expired. However, claims worth another $8 billion remain in force.

Kazakhstan is seeking compensation from the NCOC consortium, which includes ExxonMobil, Shell, TotalEnergies, Eni, China National Petroleum Corporation and Inpex, over alleged delays and cost overruns. The consortium denies the claims, citing weak evidence and expired deadlines. It says some evidence points to Kazakh officials rather than oil companies as the source of the alleged corruption.

Full-scale production began only in 2016, after years of delays. The US Energy Information Administration estimates the field holds more than 13 billion barrels of recoverable resources. The wider dispute exceeds $160 billion.