Kazakhstan is considering suing the North Caspian Operating Company, the consortium of KazMunaiGaz (KMG, 16.9%), Eni, Shell, Exxon, Total (16.8% each), CNPC (8.3%) and Inpex (7.6%), over delays in the development of the giant Kashagan oil field in the Caspian Sea. The project started in September 2013 but was stopped just weeks later due to gas leaks. The resumption date is still unclear and the field might be unlikely to produce more than 100,000 bbl/d when it comes back onstream. Oil production was initially expected to reach 180,000 bbl/d and to increase progressively until reaching 370,000 bbl/d in early 2015. It was even expected to exceed 1 mb/d by the end of the decade. Moreover, gas flaring levels have already reached legal limits (2.8 mcm in September and October 2013), triggering a US$737m claim from the Atyrau Region authorities.
Kazakhstan, which owns the largest share in the oil field through KMG, has already threatened to sue the consortium over delays and could seize a bigger interest in the project or even refuse to reimburse the development costs (about US$50bn).