Kazakhstan Oil Output Plummets 14% in July Amid CPC Disruptions

Kazakhstan's oil and gas condensate output took a significant hit in July, dropping by 14% compared to June. According to an industry source familiar with operational data, production fell to approximately 1.85 million barrels per day (bpd) or 7.6 million metric tons.

The decline was linked to disruptions at the Caspian Pipeline Consortium (CPC), the main export route for Kazakh oil. The CPC pipeline is a vital artery for Kazakhstan's oil industry, transporting over 80% of the country's exports, with most volumes originating from fields such as Tengiz, Kashagan, and Karachaganak.

The disruptions at the CPC were caused by ongoing drone strikes that damaged vessels near the port. This led to a one-week suspension of oil loadings, severely impacting production levels. The CEO of Chevron, which controls the operator of the giant Tengiz oil field in Kazakhstan, reported on an earnings call that ships are now loading this week.