Key facts
- Kazakhstan alleges that international oil firms involved in the Kashagan oilfield awarded contracts with unjustified cost increases or through bribery.
- The total value of these allegedly compromised contracts is $10.7 billion.
- The allegations are part of a confidential arbitration case filed with the Permanent Court of Arbitration in The Hague.
- The Kashagan oilfield is developed by the North Caspian Project consortium, including KazMunayGas, Eni, Shell, ExxonMobil, TotalEnergies, CNPC, and INPEX Ltd.
- These claims are part of a larger $160 billion claim by Kazakhstan against the oil majors.
Kazakhstan has leveled serious corruption allegations against major international oil companies involved in the development of the giant Kashagan oilfield. In a confidential arbitration case, the Kazakh government claims that some of the world's largest oil firms awarded approximately a dozen contracts in the 2000s with unjustified cost increases or through bribery, amounting to $10.7 billion. These accusations are part of a broader, ongoing dispute between Kazakhstan and the North Caspian Project consortium—which includes KazMunayGas, Eni, Shell, ExxonMobil, TotalEnergies, CNPC, and INPEX Ltd.—over cost overruns, project delays, and environmental damages. The case has been registered with the Permanent Court of Arbitration in The Hague, though no decision has yet been made. The dispute has already led Shell to pause further investment in Kazakhstan, with CEO Wael Sawan expressing disappointment over the lack of alignment between partners and the government. This latest allegation represents the most severe accusation in the years-long legal battle, which also encompasses a larger $160 billion claim by Kazakhstan for lost production, profits, and environmental harm.