Tengiz Field - Environmental Concerns

Environmental Concerns

The oil from Tengiz field comes out of the wells hot and at a very high pressure, believed to be the highest in the world. It also contains large proportion of gas which is rich in the compound hydrogen sulfide yielding poisonous sulfur. A 1985 explosion in which one man was killed caused a 200-metre (660 ft)-high column of fire visible from 140 kilometres (87 mi). The deadly gas made it impossible for Soviet firefighters to quickly extinguish the fire. The well burned for a period of one year and was finally capped

The government of the Kazakhstan imposed stricter guidelines for handling the sulfur. In 2006, Kazakh government threatened TengizChevroil with imposing fines. In 2007, the government imposed a $609 million (74.4 billion tenge) fine on TengizChevroil. The violations included a slow progress in dealing with vast sulfur stocks at Tengiz. The company had reportedly been fined $71 million in 2003 for open air sulfur storage as well, which was then reduced to $7 million on an appeal. According to the Environmental Protection Ministry, over 10 million tonnes of sulfur was accumulated near Tengiz oil field as a by-product of crude oil production.

Government had also set a requirement to relocate the village of Sarykamys which had 3,500 residents to new homes in the vicinity of Atyrau. The relocation program was funded by TengizChevroil and was done in 2004-2006. It cost the company $73 million.

In his book Poor People, published in 2007, William T. Vollmann dedicates a significant amount of his attention to the native peoples living in Sarykamys and Atyrau and the effects of TengizChevroil's presence in these towns. Vollmann's account suggests that serious and widespread health risks were imposed upon the people of Sarykamys. Vollmann also suggests that in the corporation's efforts to displace the natives, many were not compensated fairly, so that upon being forced to move from their existing homes, they were unable to find or afford comparable housing in a new town.