Oil Majors Got Favorable Arbitration Rulings in Kashagan Dispute

Oil majors operating the giant Kashagan oil field received a pair of favorable arbitration rulings in multibillion-dollar disputes with Kazakhstan’s government over environmental fine and tax claims, according to people familiar with the matter.

Neither of the rulings settle the ongoing arbitration process, but the decisions put the companies in a slightly stronger position in their broader disputes with the Kazakh government, the people said.

The court of arbitration granted a request by oil majors including Eni SpA, Shell Plc, Exxon Mobil Corp. and TotalEnergies SE that Kazakhstan should not collect the $5 billion fine, which is related ...