Kazakh Court Fines ChevronTexaco $71 Million

Date: November 21, 2002

Source: News Room

A court in Kazakhstan has fined the ChevronTexaco (NYSE: CVX)-led oil venture Tengizchevroil (TCO) 11 billion tenge ($71 million) for "ecological damage" caused by storing millions of tons of sulphur at its Tengiz field. The fine is the latest in a series of problems for TCO, the highest-profile joint venture in Kazakhstan, a nation whose energy-based economy depends heavily on foreign investment. TCO is a 40-year, multi-billion project. But a regional Kazakh court ruled that Tengizchevroil lacked permission to store some six million tons of sulphur at the site. TCO said it viewed sulphur as a product, not a waste, and "the materials temporarily stored at Tengizchevroil facilities, including sulphur, are stored and handled in accordance with Kazakhstan's state standards and international standards."

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