Kazakhstan has raised its arbitration claims against the international oil majors that developed the Kashagan oilfield to more than $150 billion. This figure jumped after the Kazakhstan government added a claim for as much as $138 billion, reflecting the calculation of the value of oil production that was promised to the government but not delivered by the field developers. The offshore Kashagan field, one of the biggest discoveries in recent decades, is being developed by Eni, Shell, TotalEnergies, ExxonMobil, KazMunayGas, Inpex, and CNPC. Their consortium, called the North Caspian Operating Company (NCOC), has invested some $50 billion in the project.
According to Bloomberg, NCOC has a number of disputes concerning the application of certain provisions of the Kashagan production sharing agreement that are subject to arbitration. The contracting companies consider that they have acted in accordance with that contract, according to NCOC’s statement. The legal wrangling underscores the risks for foreign companies operating in the former Soviet Union state and is one of many court battles between the international majors and the government.
Kazakhstan’s energy minister said last year it was pressing ahead with $16.5 billion in claims against the consortium over disputed project costs and had no plans for a possible out-of-court settlement. However, the energy ministry said on Wednesday it was not authorized to disclose the details of arbitration claims. “This is an exclusively commercial disagreement which the sides are going to resolve within the arbitration framework,” it said.
Eni confirmed that Kazakh authorities had commenced an arbitration procedure against the consortium partners and terms of the arbitration were confidential. “Whilst we are reviewing the complex allegations, we do not believe (as a general comment) the basis for the claims or the specific amounts of compensation requested to be reasonably substantiated or credible,” Eni said.
The legal disputes stem from a range of issues, including delays, technical difficulties, cost overruns, and environmental rules. The disputes are related to production costs, sulfur storage, revenue sharing, and geological conditions. The consortium partners have faced challenges with plateau in production and poisonous gas.
This commercial disagreement highlights the importance of production-sharing agreements and the need for legal frameworks that accommodate disputes. The consortium partners have invested heavily in the project, and the government is seeking compensation for lost revenue. However, the basis for the claims and the specific amounts of compensation requested are still under review by the companies.
![Terry Rozier pleads not guilty to sports betting charges By Reuters December 8, 20257:45 PM GMT-4Updated 3 hours ago Item 1 of 3 Terry Rozier, a guard with the NBA's Miami Heat, departs the Brooklyn Federal courthouse, after entering a plea in a criminal case alleging he shared non-public information with sports bettors ahead of games, in Brooklyn, New York, U.S., December 8, 2025. REUTERS/Eduardo Munoz [1/3]Terry Rozier, a guard with the NBA's Miami Heat, departs the Brooklyn Federal courthouse, after entering a plea in a criminal case alleging he shared non-public information with sports bettors ahead of games, in Brooklyn, New York, U.S., December 8, 2025. REUTERS/Eduardo Munoz Purchase Licensing Rights, opens new tab December 8 - Facing federal wire fraud and money laundering conspiracy charges for his alleged role in an illegal sports gambling scheme, Miami Heat guard Terry Rozier pleaded not guilty in federal court Monday in New York. Rozier, 31, was released on a $3 million bond. Rozier's co-defendant, Deniro Laster, also appeared in court and pleaded not guilty. He was released on $50,000 bond. He and Rozier were arrested in October in connection with a federal investigation into illicit gambling. Advertisement · Scroll to continue In an indictment from the U.S. Justice Department, Rozier was accused of tipping off Laster that he planned to leave a game for the Charlotte Hornets game early by feigning an injury. Laster and other conspirators then used that knowledge to "place and direct more than $200,000 in wagers predicting Rozier's ‘under' statistics (i.e., that Rozier would underperform)." The NBA had previously investigated suspicious prop bets placed on Rozier's unders in 2023 but did not find evidence he had violated league rules. The league placed Rozier on leave following the indictment and his arrest. An investigation into Rozier has been underway since a March 23, 2023, game when Rozier played for the Hornets. Sportsbooks reported unusual betting activities on prop bets -- all on the under -- in a game Rozier left after 10 minutes, claiming a foot injury. Advertisement · Scroll to continue The indictment alleges Rozier made it known to associates that he would depart the game early, and more than $200,000 was wagered on the under, with a share of the winnings given to Rozier. With the next status update on the case set for March 3, Rozier's lawyer, Jim Trusty, told reporters he plans to file a motion for dismissal Tuesday. Evan Corcoran, Laster's lawyer, said he would likely do the same for his client. Trusty went on to say that he will meet with the NBA in an arbitration hearing on Dec. 17, per The Athletic, to contest that Rozier's leave is unpaid. The guard was placed on unpaid leave by the league one week after he was arrested, which caused the National Basketball Players Association to file a grievance with the league. Rozier entered the league as a first-round draft pick of the Boston Celtics in 2015. He is playing this season on the final year of a four-year, $96.3 million deal he signed with the Hornets and has $160.4 million in career earnings, according to Spotrac.](https://arbitrationmonitor.com/wp-content/uploads/terry-rozier-sports-150x150.avif)