Kazakhstan’s oil exports via the Caspian Pipeline Consortium (CPC) have been significantly reduced, following a Russian order to shut down two of the three moorings at the CPC’s main oil terminal on the Black Sea. The new limit, which took effect on April 1, has cut CPC-blend oil exports by 700,000 barrels per day (bpd), capping them at 1 million bpd.
The decision to close the SPM-1 and SPM-2 moorings was made after safety inspections by Russia’s Federal Agency for Transport Supervision. These inspections were prompted by an oil spill in the Kerch Strait in December 2024.
Russia holds a 24% stake in the CPC, along with minority shareholders Chevron and ExxonMobil. The CPC pipeline, which transports oil from northwest Kazakhstan to Russia’s Novorossiysk port, plays a vital role in the country’s oil exports.
The shutdown comes amid ongoing geopolitical tensions related to U.S. efforts, under former President Donald Trump, to negotiate a peace deal between Russia and Ukraine.
Industry experts have warned that the suspension of CPC exports could lead to a significant drop in Kazakhstan’s crude oil exports, with projections indicating that the reduction will cut shipments in half. Before the cap, Kazakhstan exported around 1.4 million bpd of CPC-blend oil. The new limit reduces this to 700,000 bpd.
Reports indicate that Kazakhstan’s largest oil projects, operated by Western companies, may be forced to reduce production further if the suspension continues into the coming week.
This development also comes at a challenging time for Kazakhstan, as it has been struggling to meet its OPEC+ production quotas. Over the past few years, the country has regularly exceeded its limits, as Western operators, who have invested heavily in expanding production, have been unwilling to cut back.
In March, Kazakhstan’s oil and gas condensate production reached a record high of 8.95 million metric tons (about 2.17 million bpd), driven by increased output at the Tengiz oilfield and steady CPC exports, according to Azerbaijan’s News.az.
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