Kazakhstan's Compensation Claims Against Kashagan Oil Firms Jump to $150 billion [Financial Post (Toronto, Ontario, Canada)]
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billion, demanding compensation for lost revenue in addition to a dispute over costs, according to people familiar with the matter. Author of the article: You can save this article by registering for free here . Or sign-in if you have an account. (Bloomberg) — Kazakhstan has increased its arbitration claims against international oil companies that developed the Kashagan oil field to more than $150 billion, demanding compensation for lost revenue in addition to a dispute over costs, according to people familiar with the matter. Kazakhstan's government was already involved in a $15 billion arbitration over production costs at the giant field, which has been beset by delays, technical difficulties and cost overruns since development began more than 20 years ago. The additional claim is for as much as $138 billion in lost revenue, reflecting the calculation of the value of oil production that was promised to the government but not delivered by the field developers, the people said
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