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Category: Policy & Regulation

NCOC seeks arbitration over sulphur fine

The North Caspian Operating Company (NCOC), which operates the huge Kashagan oil field in Kazakhstan, has said that it is seeking international arbitration to resolve its ongoing dispute with the government of Kazakhstan. Kazakhstan has imposed a swingeing $4.6 billion fine for alleged violations of sulphur storage regulations at the NCOC site. In December, a special administrative court in Astana turned down an appeal by NCOC, although it also granted leave to appeal in a higher court. NCOC, a partnership between Shell, Eni, TotalEnergies, ExxonMobil, China National Petroleum Corporation, Inpex and Kazakh state oil and gas company KazMunayGaz, continues to maintain that its sulphur handling operations have been conducted in compliance with Kazakhstan’s laws and that it had the required permits in place.

EU to suspend import duties

The European Commission (EC) officially proposed to suspend, for one year, the most favoured nation (MFN) duties on imports of several key nitrogen-containing fertilizers and inputs for their production, including ammonia and urea, officials said 24 February. The tariff suspension will be implemented for all countries, except Russia and Belarus, through duty-free tariff rate quotas, the Commission noted. Imports beyond these quotas will be subject to standard MFN duties, it added.

Exxon in legal case over pipeline access

ExxonMobil has been named by Clean Hydrogen Works as an additional defendant an in existing anti-trust suit over access to a CO2 pipeline. Clean Hydrogen Works alleges that CO2 enhanced oil recovery firm Denbury, now acquired by ExxonMobil, unlawfully terminated its previously agreed access to Denbury’s pipeline network, threatening the proposed Ascension Clean Energy (ACE) blue ammonia project in Louisiana’s Ascension Parish. ExxonMobil has its own blue hydrogen and ammonia project under development, at Baytown, Texas, although it “paused” it last year, citing weak customer demand and difficulty securing sufficient offtake agreements. ExxonMobil has not publicly commented on the lawsuit.