The largest oil giants knew about violations at Kashagan long before Kazakhstan's claims.

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The largest oil giants knew about the violations at Kashagan long before Kazakhstan's claims

According to Bloomberg sources, companies discussed the accumulation of sulfur and related risks, including the possibility of fines, for several years, but did not take any action to rectify the situation. In 2020, the operator proposed to start processing and selling sulfur to reduce storage volumes and avoid sanctions, but this required additional investments, as the project budget had already exceeded $55 billion.

According to Bloomberg, project partners assessed the cost of sulfur processing and removal against the risks of potential fines and concluded that environmental measures would negatively impact their profitability. By 2022, the volume of accumulated sulfur at Kashagan reached 1.75 million tons. After an environmental inspection, the Kazakh authorities filed claims against the consortium amounting to approximately $5 billion.

The Telegram channel Protenge.kz, commenting on the situation, emphasizes the serious environmental risks for the Caspian region associated with the long-term storage of sulfur, which is a toxic substance.

The role of the national company "KazMunayGas," which participates in the project, is also being questioned. Bloomberg's materials report that in 2020, KMG was only formulating its position on proposals for sulfur processing, while other participants were already actively discussing possible actions.

The community is raising important questions: Were oil companies required to reduce sulfur storage volumes and remove it from the field? If so, how much have the reserves already been reduced? If not, why have measures regarding environmental safety not yet been implemented?

The situation with sulfur accumulation at Kashagan goes beyond a simple corporate conflict and raises doubts about compliance with environmental standards in Kazakhstan, as well as the safety of the Caspian region.
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