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Eastern Caspian
45
Environment and Security
be far greater than in other parts of the sea
(Ministry of Environment Protection of the
Republic of Kazakhstan 2007).
Some environmental experts suggest that
damage caused by oil pollution could – in the
long term – exceed short-term profits gener-
ated by oil development (Nogaev 2007; Di-
arov 2007). Experts point out that once the
region’s energy resources are exhausted, it
will have to cope with the results of several
decades of oil and gas extraction (polluted
environment, depleted biodiversity, etc.)
without the financial resources to remedy
the damage wrought by industry. Long-term
damage and impacts could consequently
far exceed current short-term benefits
48
.
Several Caspian oil deposits contain natu-
rally occurring radioactive elements. Long-
term exploitation of these deposits, espe-
cially in Mangystau province, has caused
the formation of 10–15 000 tonnes of low-
level radioactive oil waste and scrap metal,
which is being temporarily stored on-site
(Ministry of Environment Protection of the
Republic of Kazakhstan 2007). These radia-
tion sources represent an additional threat
to environmental security.
There is a serious risk of industrial pollution
in the northern Caspian. An accident already
occurred in 1985, when Tengiz well #37 shot
a column of flame 150–200 metres into the
air. It took more than a year to put out, burn-
ing 3.5 million tonnes of oil and half a million
tonnes of hydrogen sulphide. This accident
significantly impacted biodiversity and pub-
lic health within a 50–100 km radius (Akhme-
tov 2006; Ministry of Environment Protection
of the Republic of Kazakhstan 2007). In the
Beyneu and Karakiyan districts industrial de-
velopment has so severely damaged pasture
that the population has started to move graz-
ing cattle to neighbouring areas.
pacity currently is 9 million tonnes (Ministry
of Environment Protection of the Republic of
Kazakhstan 2007). This means that with low-
er demand for sulphur and fewer exports the
heap of sulphur stored in the open air may
continue to increase, prompting concerns
among local authorities and in the commu-
nity. The Kazakh environmental authorities
have recently imposed a US$309 million fine
on TengizChevroil (TCO) – the field operator
and a Chevron-led venture – for breaches of
environmental regulations – including stock-
piling sulphur
46
.
In 2006 local authorities and TCO carried out
an assessment of environmental and health
effects of storing sulphur in the open air at
Tengiz. The Kazakh Institute of Oil and Gas
admitted that increased sulphur accumula-
tion and storage could raise environmental
pressures, and risks to the public and oc-
cupational health
47
. With the introduction
of stricter environmental targets, moderni-
zation of production methods and facilities
gas flaring on the Tengiz field was reduced
from 1 800 million cubic metres in 1999 to
420 million cubic metres in 2006 (TCO En-
vironmental Bulletin 2006). Further cuts in
this type of pollution are planned after 2008,
when a new plant will start producing granu-
lated and block sulphur using the deposits
stored on the Tengiz oilfield. Finally the new
ecological legislation (Environmental Code
of Kazakhstan 2007), coupled with stricter
enforcement, will also contribute to improv-
ing the situation in the region.
On the other hand changes at Kashagan and
Tengiz indicate that the Kazakh authorities
– perhaps following the Russian example on
the Sakhalin-2 oilfields in Siberia – seem to
be stepping up pressure on energy multina-
tionals operating in the Caspian region.