Kazakhstan's Oil Production Plummets Amid Terminal Closure

Kazakhstan's oil production has plummeted after the closure of its main exporting terminal in Russia's Black Sea due to drone attacks. The country, one of the world's top 10 oil producers, saw a more than halved daily output from the average June levels.

The decline is attributed to the closure of the Caspian Pipeline Consortium (CPC) pipeline, which accounts for over 80% of Kazakhstan's oil exports. According to an industry source, oil and gas condensate production dropped to 133,200 metric tons, or around 1 million barrels per day, from 2.16 million bpd.

The CPC pipeline runs from Kazakhstan's Tengiz oilfield in the west of the country via Russia to the port of Novorossiysk on Russia's Black Sea coast. The ministry stated that Caspian Pipeline Consortium (CPC) pipeline loading operations had resumed after a week-long suspension, with two oil tankers berthed for loading at the terminal.

The closure and resulting production decline have added to global oil supply jitters over the Strait of Hormuz's effective closure and risks of passage over other main sea routes for commodity exports. Chevron, one of the companies operating in Kazakhstan, continues to monitor the situation at CPC, prioritizing personnel safety.