Kazakhstan’s oil exports through the Caspian Pipeline Consortium (CPC) are progressing as planned, despite recent damage to the pipeline, the country’s energy minister confirmed on Wednesday. A Ukrainian drone attack on Russia’s Kropotkinskaya pumping station in southern Krasnodar region on February 17 did not disrupt the flow of oil.
Energy Minister Almasadam Satkaliyev reassured reporters that there is no risk of a reduction in tanker loading volumes. He also stated that there are no restrictions on oil intake, with storage capacity sufficient to maintain stable operations.
Kazakhstan’s oil production has reached a record high, despite the challenges faced by the CPC pipeline. On February 19, the country’s oil and gas condensate production hit 2.12 million barrels per day (bpd), according to official data. However, Russia reported this week that the CPC’s capacity has been reduced by 30-40% due to the drone attack.
It is unclear how Kazakhstan has been able to increase output despite limited export capacity. The country relies on the CPC for more than 80% of its oil exports. This production boost is largely attributed to the giant Tengiz oilfield, which is undergoing a $48 billion expansion led by Chevron Corp. (NYSE:CVX).
Last month, Reuters reported that Kazakhstan could sharply increase its crude oil exports via Turkey’s Ceyhan port, reducing its dependency on Russia. Energy Minister Satkaliyev stated that exports through the Baku-Tbilisi-Ceyhan (BTC) pipeline could rise to 20 million metric tons per year, up from the current 1.5 million, as the country ramps up oil production.
The risk of disruptions to Russian oil flows remains high, as Ukraine intensifies drone attacks on Russian energy infrastructure. Ukrainian drones recently targeted a major seaport in southern Russia and Rosneft PJSC’s Tuapse oil refinery. These attacks could potentially affect fuel exports, as confirmed by a Ukrainian law enforcement official, who revealed that Tuapse port and refinery were hit overnight on Tuesday.
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