Energy firms face up to $4 billion payout after losing Karachaganak arbitration, Bloomberg News reports

Jan 26 (Reuters) - An international consortium developing the Karachaganak field has lost an arbitration case brought by Kazakhstan's government, leaving them liable to pay as much as $4 billion in compensation, Bloomberg News reported on Monday, citing people familiar with the matter.

The oil project is operated by a consortium led by Eni ENI.MI and Shell SHEL.L, which hold a 29.25% stake each. Other partners include Chevron CVX.N with 18%, Lukoil LKOH.MM with 13.5% and KazMunayGaz KMGZ.KZ with 10%.

The court has not yet set the final amount the consortium must pay, the report said, adding that the Karachaganak venture may still appeal the decision.

External legal advice obtained by Kazakhstan suggests the arbitration ruling means the partner companies in the Karachaganak project will have to return between $2 billion and $4 billion, the Bloomberg report said.

The mechanism for repaying the money could result in changes to the oil distribution formula in the field's production sharing contract, Bloomberg said.

A Chevron spokesperson declined to comment as the proceedings in the dispute were still ongoing. Shell, Eni, Lukoil and KazMunayGas did not immediately reply to requests for comment.