Kazakhstan's Tengiz Oilfield Resumes Operations After Electrical Fires

Kazakhstan is restarting its Tengiz oilfield after electrical fires caused significant disruptions. Energy Minister Yerlan Akkenzhenov aims to resume full production within a week, though industry sources express skepticism. Chevron's expansion plans face challenges due to recent setbacks, impacting Kazakhstan's oil export volumes.

Kazakhstan is embarking on the gradual restart of its Tengiz oilfield, following three unexplained electrical fires that disrupted operations earlier this month. The fires resulted in a loss of 7.2 million barrels of oil production. Efforts are underway to restore the field to full capacity within a week.

Energy Minister Yerlan Akkenzhenov mentioned that the adjacent Korolev field is already operational. However, relaunching Tengiz is complicated due to critical equipment damage, with three out of 30 transformers affected. While hopes are high for recovery, industry sources remain skeptical about reaching full production swiftly.

Chevron, the field's developer since 1990, is moving forward with a significant expansion plan despite setbacks. Kazakhstan's overall oil export has been impacted, pushing the country closer to OPEC+ production limits. Nevertheless, Kazakh officials are optimistic about compensating for the lost volume over time.

(With inputs from agencies.)