Chevron Sees No Extended Shut-In for Kazakh Oil Pipeline Amid Drone Attacks

Chevron is confident that oil exports from Kazakhstan will continue despite disruptions caused by recent drone attacks on tankers. The Caspian Pipeline Consortium's line, which carries crude oil from the Tengiz field and other Western-led developments in Kazakhstan to a marine terminal near Novorossiysk, has been targeted by unidentified drones. Tankers arriving at the terminal have been attacked twice this month, but Chevron CEO Mike Wirth says he doesn't think there will be an extended shut-in of the pipeline's operations.

The 1500-kilometre pipeline transports around 80% of Kazakhstan's crude exports, and about 1% of total global oil exports. Speaking to investors after Chevron's second quarter results, Wirth identified alternative export routes from Kazakhstan but said Caspian Pipeline remains 'the primary route to market' for Chevron and others in the region.

The Kazakh Energy Ministry has also stated that halting operations on the pipeline is not being considered, despite repeated drone attacks. The ministry says it is in constant communication with the pipeline's volume suppliers and is working to increase intake capacity as soon as possible.