UPDATE 1-Kashagan oil operator says arbitration blocks Kazakhstan from enforcing fine
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ALMATY, July 16 (Reuters) - The operator of Kazakhstan's Kashagan oilfield said on Thursday that an international arbitration has issued a restraining order prohibiting Kazakhstan from measures to enforce an environmental fine.
Kazakhstan's Justice Ministry said on Tuesday that the operator of the Kashagan oilfield must pay the fine of 2.3 trillion tenge ($4.90 billion) by July 20.
The country, which accounts for around 2% of daily world oil supply, is engaged in arbitration with international oil majors working on several of its oilfields, which it accuses of various environmental violations and corrupt practices.
In a statement, the North Caspian Operating Company (NCOC), Kashagan's operator, said: "The arbitral tribunal has issued a Restraining Order that prohibits the Republic from taking any measures to enforce the fine while the arbitration is pending."
"NCOC and the Contracting Companies reject the fine and the allegations underlying the fine, and are contesting them by all available means."
The North Caspian Operating Company is a joint venture of Shell SHEL.L, TotalEnergies TTEF.PA, ExxonMobil XOM.N and China's CNPC, among others.
In January, Kazakhstan won an arbitration concerning the Karachaganak field, in which it was seeking to recover around $4 billion.
