Tengiz Oil Field Shutdown Disrupts Global Oil Market

A fire at the Tengiz oil field in Kazakhstan led to a temporary shutdown of production, impacting global oil prices. A commission is investigating the cause of the incident. Tengiz, operated by Tengizchevroil with Chevron as a major stakeholder, might remain halted for up to 10 days.

The Tengiz oil field, one of the world's most significant producing sites, halted production following a fire outbreak on January 18 at a power unit. This incident has caused a rise in global oil prices as the investigation into its causes is underway.

The Kazakhstan energy ministry announced that a special commission is thoroughly examining the circumstances surrounding the technological failure. It is projected that production could remain suspended for an additional 7-10 days, as safety measures are prioritized to protect both personnel and equipment.

Operated by Tengizchevroil, with Chevron holding a 50% stake, the field's shutdown and subsequent installation of force majeure impact the CPC Blend supplies. The interruption adds to existing challenges faced by Kazakhstan's oil sector, including export bottlenecks and energy-related drone attacks.

(With inputs from agencies.)