Tengiz Oilfield Recovery: A Slow Rebound Amid Technical Challenges

Kazakhstan's Tengiz Oilfield is recovering production after a fire and power outage. Output expected to rise to 46% of normal by February 7. Chevron-led TCO halted production on January 18, with output now slowly resuming. Challenges remain for a full recovery as energy officials urge quicker action.

Kazakhstan's largest oilfield, Tengiz, is struggling to restore normal production levels after a fire and subsequent power outage prompted a shutdown in mid-January. As operations gradually resume, reports indicate that production will reach only about 46% of its usual capacity by February 7.

The shutdown has been a major hurdle for Kazakhstan, notably as its main export routes were previously impacted by geopolitical tensions. Chevron-led Tengizchevroil (TCO) temporarily ceased operations at the Tengiz and Korolev oilfields due to the incident, with the initial cause of the fire remaining unclear.

While production is improving, the pace of recovery remains uncertain, and a full return to regular output levels appears challenging. Kazakhstan's government is pressing companies like ExxonMobil, a key stakeholder in the consortium, to expedite efforts in addressing the issues and preventing future occurrences.

(With inputs from agencies.)