26.01.2011, 17:20 5282

Kazakhstan fines Karachaganak gas project on environment breaches

Kazakhstan fined the consortium that runs the large Karachaganak natural gas project approximately $27 million for environmental violations last year, the Ecology Ministry said in a statement on Tuesday, the agency reports.

Astana. January 26. Kazakhstan Today - Kazakhstan fined the consortium that runs the large Karachaganak natural gas project approximately $27 million for environmental violations last year, the Ecology Ministry said in a statement on Tuesday, the agency reports.

The ministry said the consortium, led by Italy's ENI SpA (ENI.MI) and Britain's BG Group (BG.L), was subject to two unscheduled inspections in 2010. Each ruled the operators had breached Kazakhstan's environmental rules, Reuters reported.

The ministry cited "a number of violations of ecology laws and damage for arbitrary and excessive storage of waste", without providing further details. The amount of the fine, though relatively small, is the latest in a series of challenges faced by the operators of the Karachaganak project, which produces nearly half of Kazakhstan's gas, 18 percent of its oil and has substantial expansion plans.

Kazakhstan's customs committee said last week it recovered $143 million from the consortium in 2010.

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