Shell Halts New Investments in Kazakhstan Amid High-Stakes Legal Disputes
Energy giant Shell has paused its investments in Kazakhstan as ongoing legal battles with the government cast uncertainty over the company’s future involvement in the country.
Speaking at an investor conference, Shell CEO Wael Sawan said arbitration rulings tied to disputes with Kazakhstan are influencing the company’s investment strategy, The Caspian Post reported via foreign media.
“This affects our desire to continue investing in Kazakhstan,” Sawan said, adding that the company will wait for “a clearer situation” before committing to any new projects.
The disputes stem from lawsuits filed by Kazakhstan against foreign partners in major oil and gas ventures, with potential compensation in one case estimated at up to $4 billion. Sawan did not specify whether the pause applies to ongoing operations or only to future investments, and Shell declined to offer further details.
Despite the freeze, the CEO подчеркнул that Shell still sees long-term potential in Kazakhstan but is holding back on decisions for now.
Shell is part of the Karachaganak project consortium alongside Eni, Chevron, Lukoil, and Kazakhstan’s state energy firm KazMunayGas. The partners retain the option to appeal the arbitration ruling.
