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Kazakhs Said to Weigh $2 Billion Penalty on BG, Eni Project

  • Fine for failing to fulfil certain contractual obligations
  • Kazakh government may consider raising Karachaganak stake
Updated on

Kazakhstan’s government is considering levying a penalty on a venture led by BG Group Plc and Eni SpA that operates the nation’s second-biggest producing oil and gas field as the state seeks extra revenue to bolster its finances, according to two people familiar with the plan.

The fine on the Karachaganak project could be as much as $2 billion, one of the people said. That would be roughly in line with penalties the government threatened to impose in a 2010 dispute that ended with the state taking a 10 percent stake in the project.