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Kashagan consortium to face emissions penalty

17 january 2014, 13:58
Kashagan Oil Field. Photo ©REUTERS
Kashagan Oil Field. Photo ©REUTERS
The international consortium developing in the giant Kashagan oil field in Kazakhstan will be subject to emissions penalties, Tengrinews reports citing the Minister of Oil and Gas Uzakbay Karabalin.

Oil production at Kashagan started on September 11, 2013, but was suspended shortly after, because several gas leaks were discovered at the pipelines from Island D to Bolashak refinery. Causes of the pipeline defects are being studied, and the operators are promising to resume the production soon.

Speaking about fines and penalties Uzakbay Karabalin said: “There will be sanctions and fines applied. The ones that are specified in our agreement. The size of the penalties will first of all depend on the fines for the ecological damage caused by the gas leaks and acid gas incineration. All this is under the jurisdiction of the Ecology Ministry. They have already conducted several meetings with the contractor to define the precise volume of gas incinerated, bled and so on.”

The gas pipelines are being examined. A total of 27 violations have been discovered. "The data analysis is being finalized. We expect the work to be completed by the end of the month. After that, the contractor will present a plan of restoration of the gas pipeline and the system in general,” Karabalin concluded.

The Minister added that the estimates of the size of the fine would be ready by the end of the month.

By Baurbek Konyrov

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