Kazakh authorities have launched a criminal investigation against the directors of the oil consortium Karachaganak Petroleum Operating (KPO) suspected of embezzling 187 billion tenge ($1.25 billion), a Kazakh financial police official said on Thursday.
"A criminal lawsuit was filed against KPO's top officials over a 187-billion tenge embezzlement charge by overstating oil production costs in 2002-2007," Murat Zhumanbai said.
Zhumanbai said the embezzlement was revealed after an audit by KTMG Audit and Ernst & Young. "It was confirmed by experts," Zhumanbai said.
In March of this year, the Kazakh financial police accused KPO of illegal oil production and appropriation of $700 million in profits.
The Kazakh Prosecutor General's Office also said it had started investigations into labor and migration violations by KPO.
KPO is a consortium of oil production companies developing the Karachaganak condensed gas deposit in western Kazakhstan. It comprises British energy giant BG Group, an integrated energy company Eni, along with the oil giants Chevron and LukOil.