Kazakhstan Accuses Big Oil of $10.7 Billion Corruption in Kashagan Oil Project
Kazakhstan has alleged in a confidential arbitration case that some of the biggest international oil firms that have developed the giant Kashagan oilfield awarded $10.7 billion worth of contracts with unjustified cost increases or through bribes, the International Consortium of Investigative Journalists (ICIJ) team reported on Friday, citing multiple sources. The Kashagan oilfield was developed…
In a confidential arbitration case, Kazakhstan has accused some of the world's largest oil companies, collectively known as the Kashagan Consortium, of awarding $10.7 billion in contracts with inflated costs and potentially through bribery, according to the International Consortium of Investigative Journalists (ICIJ). The consortium consists of major oil companies such as Eni, Shell, ExxonMobil, TotalEnergies, CNPC, and INPEX, along with Kazakhstan's state oil company KazMunayGas.
The allegations were reportedly made by Kazakhstan in the Permanent Court of Arbitration in The Hague, which has yet to rule on the matter. This claim is part of a broader dispute between Kazakhstan and the consortium over cost overruns, project delays, and environmental damage at the Kashagan oilfield, which could lead to a total of $160 billion in claims.
The corruption allegations come as Shell has paused its investment in Kazakhstan, citing a lack of alignment with the government's stance on certain issues.
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