Kazakhstan has restored oil production to a stable level after output fell due to disruptions in shipments through the Caspian Pipeline Consortium (CPC). At present, there is no reduction in production volumes.
WHY PRODUCTION FELL
According to Interfax citing the Ministry of Energy, in July oil production at the major fields came in below plan due to the suspension of shipments through the CPC.
Between 17 and 20 July, the tankers Nelsa, Asia, Nissos Ios and Nordic Zenith came under attack from unmanned aerial vehicles (UAVs) in the waters of the CPC marine terminal. On 20 July, the consortium halted oil shipments through the marine terminal and later suspended the receipt of crude into the system.
WHEN TRANSPORTATION RESUMED
On 27 July, the Ministry of Energy reported the resumption of oil transportation along the Tengiz – Novorossiysk route and of shipments through the marine terminal.
However, on 30 July, the CPC once again suspended shipments after an attack on tankers. During loading, the tanker Nissos Sifnos, flying the flag of the Marshall Islands and whose cargo owner was Tengizchevroil LLP, caught fire. During the same period, the tanker Marathi, which was en route to receive oil, was attacked.
HOW THE INCIDENTS AFFECTED THE PLANS
Despite the disruptions, oil production in Kazakhstan is currently being maintained at a stable level. At the same time, Energy Minister Yerlan Akkenzhenov said the country had to revise its production plan for 2026 from 98 million tonnes down to 96 million tonnes due to the disruptions in shipping oil into the CPC system.
According to the minister, as a result of the incidents at the CPC in January and July, Kazakhstan lost 3.5 million tonnes of oil production.
WHY THE CPC MATTERS TO KAZAKHSTAN
The CPC transports oil from the major Kazakhstani fields of Tengiz, Kashagan and Karachaganak. The system connects the fields of western Kazakhstan and Russian fields on the Caspian shelf with the marine terminal at Novorossiysk.
This route accounts for more than 80% of the oil pumped through pipelines from Kazakhstan. As a result, any suspension of receipts or shipments through the CPC directly affects the ability to maintain planned production levels.
