(27 January 2026 | Source: Ulysmedia.kz)
Ministry of Energy of Kazakhstan has refused to comment on the details of the legal dispute with members of the Karachaganak Petroleum Operating B.V. (KPO) consortium, citing the confidentiality regime of the proceedings.
It was previously reported that the project's investors lost the international arbitration and may now have to pay Kazakhstan compensation of between $2 and $4 billion.
MINISTRY'S POSITION
The department explained that all case materials, including the circumstances of the dispute and the conditions of the proceedings, are closed to public access. This is stipulated by the arbitration agreement, according to which the parties do not have the right to disclose details of the process until the restrictions are lifted by the competent authority, reports Ulysmedia.kz.
The Ministry of Energy emphasised that under these circumstances they are not authorised to provide explanations or comments on the case. Whether the investors plan to challenge the arbitration decision is also currently unknown.
CONTEXT
The lawsuit concerning the Karachaganak project was filed by Kazakhstan in 2023. Initially, the amount of the claim was $3.5 billion, but was later increased.
The claims are related to costs which, according to the authorities, were incurred without approval and were not provided for in the production sharing agreement.
In 2024, the investors offered to settle the dispute by building a gas processing plant, but no agreement was reached.
The KPO consortium includes Shell, Eni, Chevron, Lukoil and KazMunayGas.