An international arbitration panel reviewing a dispute between the Kazakh government and major oil companies operating under a production-sharing agreement at the Karachaganak field has ruled in favor of the republic.

According to the ruling, the tribunal has not yet determined the exact amount the project partners will be required to pay. However, external legal advisers estimate potential compensation in the range of $2 billion to $4 billion, The Caspian Post reports via foreign media.

The arbitration decision confirmed the government’s position that the companies had recovered unapproved cost overruns and other expenses that should not have been reimbursed under the production-sharing agreement governing the Karachaganak project.

In response, Kazakhstan’s Ministry of Energy plans to tighten requirements for operators at both the Karachaganak and Kashagan oil fields. At the same time, the Karachaganak partners retain the right to appeal the court’s decision.

The ruling represents a partial victory for Kazakhstan, which had initially sought more than $6 billion from the operators of the Karachaganak field, underscoring the government’s broader efforts to strengthen oversight of major energy projects.