The Kazakh government has frozen property and transportation assets belonging to the North Caspian Operating Company (NCOC), according to records from the national justice ministry. The administrative action, enacted on July 21, follows the non-payment of an environmental fine totaling 2.3 trillion tenge, or approximately $4.84 billion. The ministry database did not specify the exact nature or location of the affected vehicles and property.
Kazakhstan issued the fine based on allegations that NCOC exceeded authorized limits for sulfur storage at the Kashagan oil field. In addition to the asset freeze, the government has notified the head of NCOC of potential criminal prosecution related to the unpaid fine. NCOC is a joint venture consortium that includes international energy firms such as Shell, TotalEnergies, ExxonMobil, and China's CNPC.
NCOC and its partner contractors have denied the environmental allegations and are contesting the fine through international arbitration. Representatives for the consortium did not immediately provide a public comment regarding the recent freezing of assets. The Kashagan field, located in the Caspian Sea, is one of the largest offshore oil developments in the country.