Kazakhstan reduces oil output significantly due to tanker attacks in the Black Sea disrupting operations at the CPC terminal.
Tanker attacks in the Black Sea have tightened the oil valve: Kazakhstan has reduced production.
The repeated targeting of tankers around the Caspian Pipeline Consortium terminal, through which Kazakh oil is exported, has led to the suspension of loading operations and a reduction in Kazakhstan's oil production. It has been reported that daily production at the country's largest field, Tengiz, has decreased from approximately 925,000 barrels to about 406,000 barrels. While Russia holds Ukraine responsible for the attacks, the Kiev administration has not made any statements on the matter.
Kazakhstan has reduced its oil production in a controlled manner following the tanker attacks at the Caspian Pipeline Consortium, abbreviated as CPC, marine terminal in Russia's Novorossiysk region.
The Kazakh Ministry of Energy announced that production was reduced to prevent overflow in storage tanks after the terminal's oil acceptance and ship loading activities were halted for safety reasons. According to industry sources speaking to Reuters, production at the largest oil field, Tengiz, fell from an average of 925,000 barrels per day in July to about 406,000 barrels per day on July 23. Kazakhstan's oil and gas condensate production also decreased from 2.07 million barrels per day to 1.63 million barrels per day.
Four tankers were targeted within three days.
The first attack occurred on July 17, targeting a tanker named NORDIC ZENITH that was heading to the CPC terminal for loading. It was reported that the vessel, which was empty at the time, caught fire. The fire was brought under control by the crew, while 13 sailors were evacuated by CPC's boats, and nine personnel remained on board. CPC did not disclose the perpetrator of the attack.
On July 19, the tankers ASIA and NISSOS IOS were targeted during loading operations. The fire on ASIA was extinguished; CPC announced that there were no casualties or oil spills reported from the incidents.
On the night of July 20, a tanker named NELSA was attacked by a drone while loading at one of CPC's single-point mooring buoys. A fire broke out on the vessel, but the Kazakh Ministry of Energy announced that the fire was brought under control, there were no injuries, and no marine pollution was detected.
Sources speaking to Reuters reported that on July 23, two more tankers near the terminal were targeted by drones, and a fire broke out on one of the vessels. Official details regarding the names and damage status of these last two vessels have not yet been disclosed.
Eighty percent of Kazakh oil is exported through this pipeline.
The CPC pipeline, approximately 1,500 kilometers long, connects Kazakhstan's western oil fields to Russia's Black Sea coast. The pipeline carries about 80% of Kazakhstan's oil exports and approximately 2% of the world's daily crude oil supply. Industry sources reported that oil entry into the terminal has been cut off and that storage tanks are full.
Therefore, the impact of the attacks was not limited to physical damage on a few tankers. The inability to load has created a bottleneck that extends directly to production wells.
The increase in risk in the Black Sea is also causing tanker owners to add war and security premiums to freight rates. Brokers interviewed by S&P Global reported that a risk premium has emerged in Black Sea Suezmax freight rates following the CPC attacks.
There is no definitive judgment on the perpetrator.
Russia has blamed Ukraine for the attacks. However, Ukrainian authorities have not made any public statements regarding the recent attacks on CPC tankers. Therefore, it should not be written as confirmed information that the attacks were 'carried out by Ukraine.'
From Turkey's perspective, the developments are significant in terms of Black Sea tanker traffic, strait crossings, insurance costs, and regional oil supply. Any prolonged interruption at CPC could increase Kazakhstan's interest in alternative routes through the Caspian and the Baku-Tbilisi-Ceyhan connection. However, considering the volume of CPC, it does not seem possible for alternative routes to take over the entire load in a short time.
Source: SeaNews Türkiye
