The appointment of Alibek Kuantyrov as Kazakhstan’s minister of ecology and natural resources may signal the government’s intention to accelerate efforts to resolve a long-running environmental dispute with the North Caspian Operating Company (NCOC), the operator of the Kashagan oil field, according to investment firm Teniz Capital Investment Banking.
The dispute centers on a 2.356 trillion tenge (about $5 billion) fine imposed on NCOC for storing sulfur above permitted limits. Teniz Capital analysts view Kuantyrov’s appointment as a possible sign that the government is stepping up efforts to resolve the conflict.
Kuantyrov took over the Ministry of Ecology and Natural Resources on Sept. 3, 2026. He previously served as deputy minister of foreign affairs, director general of the Kazenergy Association and minister of national economy.
According to Teniz Capital, his experience could prove valuable in a dispute involving Kazakhstan’s environmental regulations, the interests of international oil and gas companies and ongoing international arbitration.
How the dispute over the fine unfolded
The dispute stems from an inspection conducted in 2022 by the Atyrau Regional Department of Ecology. Inspectors found that 1.7 million tons of sulfur were being stored at the Kashagan site, exceeding the permitted limit of 773,000 tons. Kazakhstan subsequently imposed a fine of 2.356 trillion tenge on the operator.
NCOC disputes the allegations, maintaining that it has complied with the law and the conditions of its permits. One of the key issues is whether annual sulfur storage limits can be aggregated.
The legal proceedings have passed through several stages. In June 2025, the Supreme Court overturned an earlier ruling and sent the case back for a new hearing. In August 2025, an appellate panel annulled the administrative act on procedural grounds without ruling on the merits of the allegations. The environmental authorities subsequently reimposed the fine.
In June 2026, the Atyrau Regional Court upheld the penalty. After the deadline for voluntary payment expired, enforcement proceedings began July 21. Bailiffs seized NCOC’s real estate and vehicles, although the company’s bank accounts were not affected.
On Sept. 7, enforcement proceedings were suspended after NCOC challenged the bailiff’s actions. A court later rejected the company’s lawsuit seeking to overturn the enforcement proceedings and related restrictions. By the end of September, collection efforts had resumed.
International shareholders disagree over a settlement
NCOC and its international shareholders are challenging Kazakhstan’s actions in international arbitration proceedings.
Read also: Astana’s hardline: Why international arbitration won’t stop Kashagan fines.
Bloomberg reported Oct. 9 that the consortium’s shareholders had discussed settling the dispute with Kazakhstan but failed to reach an agreement. According to the report, ExxonMobil blocked a proposed settlement initially supported by Shell and Eni. TotalEnergies subsequently sided with ExxonMobil, preventing the proposal from moving forward.
Kashagan expansion tied to resolving the dispute
Resolving the dispute could also affect the future development of the Kashagan field. Bloomberg reported in August that ExxonMobil had told Kazakhstan a potential $80 billion investment to expand production at the field would depend on resolving outstanding disputes with the government.