Kazakhstan sees progress in claims against international oil firms by December

The Kazakhstan government expects preliminary results of multi-billion dollar arbitration claims against oil companies including Shell (NYSE:SHEL) and Eni (E) that are developing its giant oilfields by December, the Energy Minister told Reuters on Wednesday.

The government has launched proceedings against groups developing its Kashagan and Karachaganak oilfields over $13B and $3.5B, respectively, of disputed costs.

The offshore Kashagan field, one of the world’s biggest discoveries in recent decades, is being developed by a consortium that has spent ~$50B on the project; the group consists of Shell (SHEL), Eni (E), TotalEnergies (TTE), Exxon Mobil (XOM), KazMunayGaz, Inpex and CNPC.

Shell (SHEL), Eni (E) and KazMunayGaz also are partners in Karachaganak, alongside Chevron (CVX) and Lukoil, with investments totaling more than $27B.

Kazakhstan has pinned its hopes for future prosperity on the Kashagan field and has for years expressed its concerns over cost overruns and delays in its development.