Kazakhstan’s Oil Output Plummets Amid Black Sea Export Crisis

Kazakhstan's oil and gas condensate production dropped by 35% from January 1-12 due to export constraints caused by damage to the Black Sea terminal following a Ukrainian drone attack. Major oilfields like Tengiz and Kashagan saw significant declines in output, leading to a rerouting of exports to other destinations.

Oil and gas condensate output in Kazakhstan has experienced a staggering 35% drop from January 1-12, compared to December's average. According to a source familiar with the data, this decline is mainly attributed to export constraints via the Black Sea terminal.

The constraints on Kazakhstan's oil exports followed a Ukrainian drone attack on November 29 at the Caspian Pipeline Consortium's Black Sea terminal in Russia, which handles around 80% of Kazakhstan's oil exports. The attack caused severe damage to one of the terminal's three moorings, impacting companies like Chevron and ExxonMobil.

Production in early January fell to 1.21 million barrels per day from 1.87 million in December. Significant declines were noted at major oilfields: Tengiz more than halved, Kashagan fell by 60%, and Karachaganak by 40%. In response, Kazakhstan diverted oil flows to other routes, including to China and via the Baku-Tbilisi-Ceyhan pipeline.

(With inputs from agencies.)