Kazakhstan is considering levying a fine of as much as $2 billion on a gas project led by BG Group Plc and Eni SpA for failing to fulfil certain contractual obligations, Bloomberg reported.
Oct 27 Kazakhstan is considering levying a fine of as much as $2 billion on a gas project led by BG Group Plc and Eni SpA for failing to fulfil certain contractual obligations, Bloomberg reported.
The fine would be roughly in line with penalties the government threatened to impose in a 2010 dispute that ended with the state taking a 10 percent stake in the gas and condensate project, Bloomberg reported, citing sources.
Eni and BG each own 29.25 percent of the Karachaganak project in north-west Kazakhstan, which they jointly operate.
State-owned KazMunayGaz owns 10 percent of the project, while U.S. oil major Chevron Corp owns 18 percent and Russia’s Lukoil 13.5 percent.
The penalty may be a precursor to the government. KazMunayGaz said questions should be addressed to the Energy Ministry, which also was not available for comment. Chevron referred queries to the project’s operators, BG and Eni.
