Ozenmunaigas environmental claims of KZT 59.3, 212.6 and 327.9 billion annulled by courts (2013–2014)
- Government and regulators Mangystau ecology department: Alleged environmental damage from the disposal of oil-contaminated soil by Ozenmunaigas; no public statement from the department on the dismissals is on record. Rogtec
- Company or project Ozenmunaigas and KMG EP: The contamination resulted from past activities on the site (Soviet-era, per Lada.kz), not from OMG or KMG EP. Lada.kz
- Courts Specialised Interdistrict Economic Court, Mangystau region: Declared the inspection act and the KZT 327.9 billion claim illegal on 19 March 2014. Lada.kz
The Mangystau ecology department brought successive claims and a fine against Ozenmunaigas, the Uzen field operator and a KMG EP subsidiary, over disposal of oil-contaminated soil. A KZT 59.3 billion claim was successfully appealed in 2013, a KZT 212.6 billion fine was dismissed in February–March 2014, and on 19 March 2014 a court declared the inspection act and the KZT 327.9 billion claim illegal.
Reported as US$1.8 billion; Tengrinews put it at 2.3 times KMG EP's 2013 net profit of US$777 million.
Status As of March 2014: the KZT 212.6 billion fine was dismissed and the KZT 327.9 billion claim was annulled at first instance; the outcome of any appeal is not on record.
- Ozenmunaigas and KMG EP — Avoided payment of KZT 59.3 billion, KZT 212.6 billion and KZT 327.9 billion in claims and fines Lada.kz
- Mangystau ecology department — Claims and fine annulled or dismissed by courts Lada.kz
- Soil at the Uzen field — Oil-contaminated soil; volume, area and contaminants not stated Rogtec
What happened
The Mangystau ecology department alleged environmental damage from the disposal of oil-contaminated soil by Ozenmunaigas JSC (OMG), operator of the Uzen field near Zhanaozen and a subsidiary of KMG EP. Three amounts were claimed in succession: KZT 59.3 billion, which KMG EP reported as successfully appealed in 2013; an administrative fine of KZT 212.6 billion; and an environmental damage claim of KZT 327.9 billion (about US$1.8 billion), which KMG EP disclosed in late February 2014.
In February–March 2014 the Specialised Administrative Court in Aktau dismissed the KZT 212.6 billion fine; KMG EP said the case had been dismissed and there was no avenue for appeal, although the prosecutor could theoretically revisit it. On 19 March 2014 the Specialised Interdistrict Economic Court of Mangystau region declared the inspection act and the KZT 327.9 billion claim illegal; the decision could be appealed by the parties and protested by the prosecutor.
OMG and KMG EP said the contamination came from past activities on the site, which Lada.kz described as Soviet-era, and not from OMG or KMG EP. No ecology department statement and no measured contamination data are on record.
- 2013KZT 59.3bn claim successfully appealed
- 2014KMG EP discloses the KZT 327.9bn claim (late Feb); Aktau Specialised Administrative Court dismisses the KZT 212.6bn fine (Feb/Mar); Mangystau economic court declares the inspection act and the claim illegal (19 Mar)
What was said
“The first-instance court decision may be appealed by the parties and protested by the prosecutor.”
“the case has been dismissed and there is no avenue for appeal”
Where accounts differ
Each party's account, side by side, with its source. The record does not settle these points; it shows them.
Alleged environmental damage from the disposal of oil-contaminated soil by Ozenmunaigas; no public statement from the department on the dismissals is on record.
RogtecThe contamination resulted from past activities on the site (Soviet-era, per Lada.kz), not from OMG or KMG EP.
Lada.kzDeclared the inspection act and the KZT 327.9 billion claim illegal on 19 March 2014.
Lada.kzHow it looked
Shown
- Headline: “Subsidiary fined by twice the amount of KMG E&P's profit”.Tengrinews, 5 March 2014 · Tengrinews
- Headline: “KMG EP's Ozenmunaigas hit with environmental damage charge”.Rogtec, from a KMG EP release, 27 February 2014 · Rogtec
Recorded
- Claim of KZT 59.3 billion successfully appealed (2013); administrative fine of KZT 212.6 billion dismissed (February–March 2014); damage claim of KZT 327.9 billion annulled at first instance (19 March 2014).
- Tengrinews: the KZT 327.9 billion claim was 2.3 times KMG EP's 2013 net profit of US$777 million.
- The KMG EP release describes the KZT 212.6 billion fine as dismissed with no avenue for appeal.
Who gained
Reached nature or the ground
Gained elsewhere
Responses on record
- KMG EP (February–March 2014): The contamination resulted from past activities on the site, not from OMG or KMG EP; the first-instance decision may be appealed by the parties and protested by the prosecutor. · Lada.kz
In court and with insurers
Lawsuits and rulings
- 2013–2013Defendant wonKZT 59.3bn claim, successfully appealed by the companyMangystau ecology department v. Ozenmunaigas (KZT 59.3bn claim)Court not named · Civil · Mangystau ecology department → Ozenmunaigas JSC
KMG EP reported that the KZT 59.3 billion environmental damage claim was successfully appealed in 2013. Rogtec
- 2014–2014DismissedKZT 212.6bn fine dismissedMangystau ecology department v. Ozenmunaigas (administrative fine)Specialised Administrative Court, Aktau · Administrative · Mangystau ecology department → Ozenmunaigas JSC
KMG EP said the case had been dismissed and there was no avenue for appeal, although the prosecutor could theoretically revisit it. Rogtec
- 2014–2014Defendant wonKZT 327.9bn claim annulled at first instance; reported as US$1.8bnMangystau ecology department claim of KZT 327.9bn against OzenmunaigasSpecialised Interdistrict Economic Court, Mangystau region · Civil · Mangystau ecology department → Ozenmunaigas JSC
On 19 March 2014 the court declared the inspection act and the claim illegal; the decision could be appealed by the parties and protested by the prosecutor. Lada.kz
Insurers
What nature saw
Nature's report opens this page. Below: further outcomes measured on the ground.
What we don't know
Nature
- Not measured Harm to nature: No independent ecological evaluation is on record.
- Disputed Who caused the oil-contaminated soil
Money
- None on record Remediation of the oil-contaminated soil — None on record.
- None on record KMG EP net profit, 2013 — US$777 million (Tengrinews).
Record
- None on record None on record: measured contamination data (volume, area or contaminants of the oil-contaminated soil) in the coverage of the claims.
- None on record None on record: payment of any of the three amounts; all three were dismissed, annulled or successfully appealed.
- None on record None on record: insurance cover or payments.
Did the harm stop?
None on record.
Who paid?
None on record: payment of any of the three amounts, or funding of remediation of the contaminated soil.
Sources
Company or project
- KMG EP's Ozenmunaigas hit with environmental damage charge (KMG EP release)Rogtec · 2014-02-27
Press and investigations
- Subsidiary fined by twice the amount of KMG E&P's profitTengrinews · 2014-03-05
- Environmental claim against Ozenmunaigas annulled by court (in Russian)Lada.kz · 2014-03-19
Connected cases
- Embamunaigas sour-gas flaring at the Prorva fields (Atyrau, 2014 and 2018) Kazakhstan · 2013–2018 Related matter
- KazMunayGas Exploration Production (KMG EP / RD KMG) (Company) — here: Parent company (KMG EP); there: Parent (KazMunayGas Exploration Production, RD KMG); co-addressee of the 2014 order
- Mangistaumunaigas fines for wastewater injection, drilling waste and furnace emissions (Mangystau, 2024) Kazakhstan · 2024–2025 Related matter
- Karaturun well blowout and methane release (Mangystau, 2023) Kazakhstan · 2023–2025
- Mangystau Region Department of Ecology (Public authority) — here: Brought the claims and fine; there: Inspection, four protocols, fines