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Kazakhs call off Tengiz probe



By Upstream staff 

Kazakhstan's Ecology Ministry has dropped claims against the Chevron-led consortium operating at the giant Tengiz field after the group pledged to stump up $300 million a year for environmental protection.

Tengizchevroil (TCO) produces a fifth of the Central Asian state's oil output from the Tengiz oilfield in western Kazakhstan but has periodically faced accusations from the government over its environmental record.

"We have managed to completely solve all of our problems," Ecology Minister Nurlan Iskakov told reporters in the capital Astana. "Tengizchevroil completely recognised all of our claims."

In February, Iskakov threatened the joint venture with the suspension of its licence if it did not produce a plan to deal with its vast stocks of sulphur within a month.

Oil from the field has a high sulphur content, which is removed from the crude and stockpiled in huge yellow slabs the size of several soccer pitches near the oil wells.

TCO has said in the past the sulphur is harmless and it has a programme to sell off the by-product gradually.

Iskakov said the ministry's change of heart came after pledges of increased environmental spending from TCO.

"Our complaint is that for every tonne of oil that they produce they spend just 1.3 tenge ($0.01)," he told Reuters.

"Now we have signed and agreed a plan presented to us under which environmental protection spending under our criteria and meeting our complaints will be 110 billion tenge ($880 million) in 2007-2009."

"Now they will be closely monitored," he added. "We'll watch every cent."

Chevron holds 50% in TCO, national oil player KazMunaiGaz has 20%, ExxonMobil 25% and Lukoil 5%.


Wednesday, 04 April, 2007, 10:18 GMT  | last updated: Wednesday, 04 April, 2007, 18:59 GMT

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