Oil Majors Close to Settling $5 Billion Kashagan Field Dispute
- Draft agreement includes pledge for additional social spending
- Kazakhstan’s president Tokayev will visit Italy this week
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The oil majors behind the giant Kashagan field are close to a deal with the Kazakh authorities that will settle a dispute over a potential $5 billion environmental fine, according to people familiar with the matter.
International partners including Eni SpA, Shell Plc, Exxon Mobil Corp. and TotalEnergies SE have prepared a draft settlement that would stop the government pursuing the environmental penalty and include a pledge from the companies for additional investment in social projects, the people said, asking not to be named because the talks are private. This spending will amount to $110 million over the next two years, one of the people said.