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Monday, 06 October, 2008, 12:50 GMT | more prices >>

Tengizchevroil to fight $609m fine



By Upstream staff 

The Chevron-led Tengizchevroil venture in Kazakhstan will challenge a $609 million fine imposed on it for environmental law violations at the Tengiz oilfield, a spokeswoman said today.

The fine was announced yesterday by Ecology Minister Nurlan Iskakov who cited the group's slow progress in removing open air sulphur stocks at the oilfield.

"We do not agree with the claim," Maria Karazhigitova, spokeswoman for Tengizchevroil which operates Tengiz, told Reuters at an oil and gas conference in Almaty.

"We disagree and will be challenging it," she said. "We are working in strict accordance with Kazakhstan's legislation."

She said a case related to the fine was filed in a regional court in July. Neither side had previously reported the fine.

The oil from Tengiz contains hydrogen sulphide which is processed into huge piles of inert yellow sulphur and stored near the oil wells before the crude is transported by pipeline.

Both the sulphur storage and accusations of excessive flaring of natural gas associated with the crude oil have in the past been the source of friction between Tengizchevroil and Kazakhstan's environmental agencies.

Tengizchevroil was previously fined $71 million for open air sulphur storage, but that sum was reduced on appeal in 2003 to $7 million by the Supreme Court.

The Tengizchevroil venture also includes ExxonMobil, Lukoil and Kazakh state-run player KazMunaiGaz.


Thursday, 04 October, 2007, 08:27 GMT  | last updated: Thursday, 04 October, 2007, 08:34 GMT

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