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MP calls for Tengiz ban



By Upstream staff 

Kazakh parliamentarian Gani Kasymov has urged the government to suspend operations at Chevron-led Tengizchevroil's Tengiz oilfield, claiming outfit has violated environmental regulations, an allegation the US supermajor has rejected out of hand.

The proposal came at a time when a separate group of Western players is trying to resolve a bitter row with the Kazakh government over the Kashagan development.

Kasymov, member of the upper house of parliament, accused Tengizchevroil venture of violating environmental laws by not dealing with its vast stocks of sulphur.

"If this ... matter is not resolved I urge you to ban this company's activities in Kazakhstan until the sulphur stocks problem is resolved," Reuters quoted Kasymov as saying.

However, Chevron rejected criticism of its environmental record in Kazakhstan.

"Tengizchevroil operates sulfur storage in an environmentally safe manner consistent with Kazakhstan's laws and regulations as well as international industry practices," Chevron spokesman Michael R Barrett said in an emailed statement.

Kasymov was handpicked just weeks ago by Kazakh President Nursultan Nazarbayev into the upper house. Proposals made by members of parliament or low-ranking officials have in the past sometimes preceded official government campaigns, Reuters said.

"The nation is closely watching the government's actions to protect our country's economic interests," Kasymov said in his speech.

"This includes the question of Kashagan development where we all support the government's actions."

He added: "In this connection I urge you to take a closer look at the activities of the Tengizchevroil company which is inflicting massive damage on the environment."

Kasymov's remarks revived memories of a wave of similar accusations against Tengizchevroil this year when the authorities threatened to halt its licence if the venture did not produce a plan to deal with the sulphur stocks.

That dispute was eventually dropped in April after the group pledged up to $400 million a year in environmental protection.

Tengizchevroil, which develops the giant Tengiz onshore oilfield in western Kazakhstan, produced 291,190 barrels per day last year. It aims to nearly double output under a second generation expansion project after 2008.

Its oil contains high sulphur content, which is removed from the crude and stockpiled in vast yellow slabs at the deposit.


Thursday, 20 September, 2007, 08:31 GMT  | last updated: Thursday, 20 September, 2007, 09:59 GMT

Centre of dispute: one of the sulphur stacks at the Tengiz field
 

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