Kazakhstan has reduced crude oil production following drone attacks on tankers in the Black Sea. The country's Energy Ministry announced that oil companies have adjusted their daily output, leading to a temporary decline in production volume.
The ministry described the decision as 'purely technical' and said it was aimed at preventing storage tanks from overflowing after the Caspian Pipeline Consortium (CPC) restricted oil shipments.
Storage tanks filled, loading suspended
Industry sources speaking to Reuters reported that oil storage tanks at the terminal reached capacity this week. CPC halted loadings at its Black Sea port on Monday following drone attacks on tankers.
Russia accused Ukraine of carrying out the attacks, claiming Kyiv was trying to disrupt global oil markets. Ukrainian officials did not comment on the attacks. Reuters reported that at least five tankers were attacked at the CPC terminal throughout July. Neither CPC nor Kazakh officials explicitly claimed responsibility for the attacks.
Kazakhstan's Foreign Ministry condemned the attacks in a statement on Sunday. The Energy Ministry noted that loadings at CPC were suspended 'to ensure the safety of vessels, crew and the environment in the Black Sea,' but that production and technical facilities were 'fully intact and operational.' The ministry announced that operations would resume as soon as conditions return to normal.
Kazakhstan's Energy Ministry did not specify the extent of the oil production cut or when CPC would resume loading operations.
CPC pipeline and Kazakhstan's exports
CPC is a 1,510-kilometer oil pipeline connecting Kazakhstan's Caspian Sea oil fields to Russia's Black Sea port of Novorossiysk. Oil loaded at Novorossiysk is then exported by tanker. CPC, in which Chevron and ExxonMobil are shareholders, accounts for about 80 percent of Kazakhstan's oil exports.
