NCOC loses appeal over sulphur storage fine

A consortium of major oil companies lost another court appeal in Kazakhstan over an environmental fine of approximately $5 billion related to the storage of excessive amounts of sulphur, according to a court ruling on April 8th. The penalty was levied against the North Caspian Operating Co. (NCOC), operator of the giant Kashagan oil field, for allegedly violating environmental regulations by stockpiling sulphur – a byproduct of processing the field’s sour gas – beyond permitted levels.
Despite the ruling, NCOC maintains that its sulphur management operations are in full compliance with Kazakh law and has stated it will “pursue all available avenues of recourse against this decision.” The venture is also challenging the fine through international arbitration.