One of Kazakhstan’s major oil companies, Caspiy Neft, has been ordered to pay over €26.6 million for violating environmental regulations.
This substantial penalty is a rare occurrence in the Central Asian nation, known for its abundance of natural resources.
Unauthorized Accumulation of Hazardous Waste
The prosecutor’s office in the western Atyrau region stated in a press release that “Caspiy Neft did not receive authorization to accumulate more than 4,500 tons of hazardous waste generated in 2021-2022 during the drilling and operation of an oil field.”
Ownership and Political Connections
Caspiy Neft is controlled by the son-in-law of former president Nursultan Nazarbayev, who ruled for three decades until 2019.
Under the current president, Kassym-Jomart Tokayev, Nazarbayev’s relatives are gradually being removed from positions of power.
Financial Penalty for Environmental Breach
According to the prosecutor’s office, the company has been fined over 13.6 billion tenge (approximately €26.6 million) for violating environmental emission standards.
Environmental Concerns in Kazakhstan’s Oil Industry
Kazakhstan’s primary oil fields, which make it the fifth-largest supplier to France, are located on the Caspian Sea coast and offshore.
However, the world’s largest enclosed body of water is facing declining water levels due to climate change, threatening oil extraction infrastructure. Additionally, the Caspian Sea suffers from pollution caused by human activities.
Major Oil Project in the Caspian Sea
Notably, the Caspian Sea is home to the Kashagan oil field, one of the world’s largest offshore oil deposits, with estimated reserves of 13 billion barrels of crude oil. This field is jointly operated by Eni, Shell, TotalEnergies, ExxonMobil, KazMunayGas, Inpex, and CNPC.