Tengizchevroil hit by new $307m fine
The Chevron-led Tengizchevroil consortium said today that it faces a fine of
up to $307 million for breaches of kazakhstan's environmental regulations at
the Tengiz field.
"Tengizchevroil will challenge this decision," the consortium said in a
statement.
Tengizchevroil has denied any wrongdoing and plans to appeal.
The fine related to open-air sulphur stocks at the oilfield.
Tengiz' oil contains hydrogen sulphide which is processed into huge piles of
inert yellow sulphur which is 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.
18 April 2008 10:50 GMT
| last updated:
18 April 2008 11:06 GMT
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