Kazakhstan Digs In for $13 Billion Fight With Oil Majors
- Eni, Shell, Exxon are being taken to arbitration by government
- They had been hoping for an agreement on future investment
Workers perform maintenance on an oil pumping unit in Akkystau village, Kazakhstan.
Photographer: Andrey Rudakov/Bloomberg
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Kazakhstan’s Energy Ministry told partners in the giant Kashagan oil venture it will press ahead with arbitration in a $13 billion dispute, a blow to the international majors that had hoped for a settlement.
The government has gone back on signals in July that it may cease arbitration, people familiar with the matter said, asking not to be named discussing private information. While the door for talks remains open, the ministry has rejected a proposal that Kazakhstan drop its claims in exchange for investment pledges.