Kazakhstan's Oil Exports Hit: Drone Attack Triggers Supply Disruptions

Kazakhstan's Caspian Pipeline Consortium, responsible for 1% of global crude supply, will remain at reduced export capacity until mid-December due to damage from a Ukrainian drone attack. The attack affected a crucial Single-Point Mooring at the terminal, leading to a temporary halt in operations and a rise in oil prices.

Kazakhstan's vital Caspian Pipeline Consortium (CPC), which facilitates 1% of global crude supply, faces weeks of diminished export capability following significant damage sustained in a Ukrainian drone attack. The attack, occurring on November 29, targeted a key part of the CPC terminal, leading to a substantial increase in global oil prices.

The assault severely impacted Single-Point Mooring (SPM)-2 at the Yuzhnaya Ozereevka terminal, crucial for oil transfer to tankers. This disruption left the consortium, involving Russian, Kazakh, and U.S. shareholders, operating at merely 50% capacity. SPM-3, also out of service for maintenance, isn't expected to resume operations before December 11, pending improvements in weather conditions and completion of complex repairs.

As a contingency, the CPC has rerouted some oil flows to alternate routes like the Baku-Tbilisi-Ceyhan pipeline. With SPM-2 repairs potentially extending for months, the consortium faces significant logistical challenges in maintaining its export commitments efficiently.

(With inputs from agencies.)