Kashagan developers to be fined, says minister

The companies developing Kashagan field in Kazakhstan will be fined for causing damage to environment and for suspending operations on the field, Uzakbay Karabalin, Kazakhstan Minister of Oil and Gas, said on Thursday at the press conference devoted to the results of session of Kazenergy Association.

“First of all the companies will be fined for causing damage to ecology,” he said.

Minister said that the Ministry of Ecology has had several meetings with the contractors.

“I think the size of fine will be available by the end of the month,” Karabalin said.

Minister did not mention possible size of the fines, referring to confidentiality of information.

He said the Ministry included Kashagan into a forecast oil production plan for 2014.

The oil production on Kashagan started on September 11, 2013, but was suspended after two weeks, because of gas leakage. The production was resumed, but another leakage was detected in October 2013. In 2022 it is planned to extract about 15 million tons of oil on the Kashagan field.—0—