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Exxon Mobil

Environmental Violations in Kazakhstan

Date: 10/04/2007 (Date of Media Accounts)

Misconduct Type: Environment

Enforcement Agency: International

Contracting Party: None

Court Type: Administrative

Amount: Unknown

Disposition: Fine

Synopsis: Kazakhstan’s ecological ministry fined Tengizchevroil, a Chevron-led consortium developing the country’s Tengiz oil field, $609 million (later reduced to $309 million on appeal) for environmental violations relating to the stockpiling of sulfur between 2003 and 2006. The fine was imposed in July 2007, although it wasn’t announced until October. Chevron has a 50 percent stake in the consortium. Other members of the consortium include ExxonMobil, which has a 25 percent share, and Lukarco, a joint venture between Lukoil and BP, which has a 5 percent share. Tengizchevroil reportedly paid the fine, plus $10 million in legal fees, in November 2007.