Kazkhstan Gov't Reduces Tengizchevroil Fine
Wednesday, March 26, 2003
The Supreme Court in Kazakhstan has reduced the amount of the ecological fine imposed on Tengizchevroil from $70 million to $7 million for storing sulphur at its Tengiz field. The fine was levied last December after a court in Atyrau ruled that the ChevronTexaco-led consortium had inflicted "ecological damage" by storing millions of tons of sulphur at Tengiz in western Kazakhstan. Supreme Court judge Sansyzbek Raimbayev said in closing remarks that the 11 billion tenge fine imposed on Tengizchevroil by an earlier court decision was null and void. He said TCO would now be liable for a fine equivalent to $7 million.
The TCO consortium is comprised of ChevronTexaco with 50%; KazMunaiGaz with 20%, ExxonMobil with 25% and LUKArco with the remaining 5%.