Oil production in Kazakhstan fell sharply after the main export route — the Black Sea terminal of the Caspian Pipeline Consortium (CPC) — suspended operations due to drone attacks, Reuters reported citing industry sources and the Kazakh Energy Ministry confirmed.
The steepest decline was at the country's largest field, Tengiz, operated by a consortium led by U.S.-based Chevron. According to one Reuters source, output there fell more than twofold on July 22 to about 406,000 barrels per day from an average of 925,000 barrels per day in July.
Total production of oil and gas condensate in Kazakhstan dropped to 1.63 million barrels per day on July 22 from a July average of 2.07 million barrels, Reuters reported.
The attacks on the CPC marine terminal near Novorossiysk occurred on July 19, Deutsche Welle reported. Drones targeted two tankers carrying Kazakh oil — the Liberia-flagged Asia and the Marshall Islands-flagged Nissos Ios. The consortium said the attack was the fifth on its facilities and called it a "terrorist attack."
After the attacks, CPC first halted loading at the terminal and then stopped accepting oil from Kazakhstan. Russia accused Ukraine of striking the tankers, saying it aimed "to further destabilize the situation on global oil markets," Reuters reported. Ukraine did not comment on the attacks.
Kazakhstan's Energy Ministry said loading operations were suspended to ensure the safety of vessels, crews, and the environment in the Black Sea area. The ministry added that all production and technical facilities of the consortium are in working order and ready to resume transshipment once the situation normalizes.
Due to restrictions on oil intake into the pipeline system, companies carried out a "controlled adjustment" of daily production levels to prevent tank farms from overflowing, the ministry said. The ministry is consulting with CPC management, shippers, and vessel owners to resume exports as soon as possible.
The CPC accounts for more than 80% of Kazakhstan's oil exports. The pipeline supplies nearly 2% of global oil. The consortium's shareholders include Russia (31%), Kazakhstan (20.75%), Chevron (15%), and private companies.