(Oil Price) – The international oil companies operating the giant Kashagan oilfield in Kazakhstan have initiated an arbitration process to challenge a massive $5-billion fine for allegedly exceeding sulfur storage limits at a processing facility at the second biggest oilfield in the OPEC+ producer.
The dispute, one of several against Big Oil that Kazakhstan currently has, is cooling the relations between the international companies and the Kazakh government.
“Despite disputing the allegations, and attempting to resolve these issues through dialogue, these efforts have not resulted in a solution,” a spokesperson for Shell told Bloomberg on Monday.
“Therefore, the international shareholders have concluded that they have no choice but to initiate a request for arbitration under international treaties,” the spokesperson added.
