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CNPC AktobeMunaiGas to pay $50 million for environmental damage

December 4 2013, 18:57

@reutersCredit:reutersCNPC - AktobeMunaiGas will have to pay 7.7 billion tenge for violating Kazakhstan's environmental laws, Tengrinews reports referring to the website of the Prosecutor’s Office in Aktobe Oblast. 

On November 11, 2013 Specialized Interdistrict Economic Court of Aktobe Oblast announced its verdict on the claim filed by a Kazakhstan environmental prosecutor asking to recover damages in the amount of 5.3 billion tenge (over $34 million) from the company for harming the environment by excess gas flaring. The court sustained the claim and In addition to the amount for damages demanded by the public prosecutor, the company will also have to pay an administrative fine for damaging the environment in the amount of 2.4 billion tenge ($15.5 million). 

The company underwent an inspection in July 2013. In the course of the inspection numerous violations were discofered at the facilities belonging to CNPC - AktobeMunaiGas. The Environmental Prosecutor’s Office of Aktobe Oblast reported that “evidence of excessive gas flaring was found at Kenkiyak and Oktyabr oil and gas production departments and at Zhanazhol refineries.”

According to the Prosecutor’s Office, as a result of “unclassified failures” and suspended operation of the technical equipment at CNPC - AktobeMunaiGas oil refinery, part of the gas was burned in flares. At the same time, the gas meters installed on the pipes were under-recording the amounts of flared gas - the meters were manually adjusted to show acceptable amounts of flaring.

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