Tribunal Rules $12 Billion of Kazakhstan’s Kashagan Claims Time-Barred

An international arbitration tribunal ruled about $12 billion of Kazakhstan’s Kashagan oil-field cost claims time-barred, leaving roughly $8 billion of a broader $20 billion challenge under consideration.

Kazakhstan had challenged about $20 billion in costs tied to the project. The claims barred by the ruling concern costs from 2011 through 2015. The decision addresses when Kazakhstan brought those claims; it does not determine whether the disputed costs were justified.

The offshore Kashagan field in the Caspian Sea is operated by a group including Inpex, China National Petroleum Company, TotalEnergies, Eni, Shell and ExxonMobil. Under the project’s production-sharing terms, the companies recover development costs through oil sales before profits are shared with Kazakhstan.