Kazakhstan oil output down in March, Chevron leads the fall -sources

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A worker checks the pressure of pumps at an oil-pumping station in the Uzen oil and gas field in the Mangistau Region of Kazakhstan November 13, 2021. REUTERS/Pavel Mikheyev

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April 4 (Reuters) - Kazakh oil production excluding condensate fell to 1.55 million barrels per day (bpd) in March, down 3% from February, amid export problems from the Black Sea Caspian Pipeline Consortium (CPC) terminal, Reuters calculations based on output data from two industry sources showed.

The fall in Kazakh oil output was because of lower intake in the Caspian Pipeline Consortium (CPC) system in the second half of March owing to storm damage to loading facilities at its Black Sea terminal situated in the south of Russia.

More than 80% of Kazakhstan's crude is exported via the CPC pipeline to the port of Yuzhnaya Ozereyevka, close to Novorossiisk, supplying around 1.2% of global oil demand.

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CPC terminal damage affected operations of Kazakhstan's giant Tengiz and Kashagan oilfields led by Western oil majors including Chevron, Exxon Mobil, Total, Eni and Shell.

Chevron-led Tengizchevroil, operator of the giant Tengiz oilfield, decreased its March oil output the most among other Kazakh producers, by 6% from February to 622,209 bpd, the sources said.

"Due to unscheduled repair works at the Caspian Pipeline Consortium's (CPC) marine terminal, Tengizchevroil (TCO) is adjusting its production accordingly and is currently exporting its crude oil in line with what has been allocated by CPC," a Chevron representative said.

TCO is the biggest exporter of oil via CPC pipeline and relies on the pipeline as its main route for oil deliveries. Lower oil intake in the CPC system hit its output almost immediately.

The Kashagan oilfield, operated by North Caspian Operating Company (NCOC) led by a consortium of Western majors, decreased its oil output by just 0.1% in March compared to February to 409,921 bpd, sources said.

From the start of April Kashagan oil output began to decline and had fallen by 31% vs its March level during April 1-3 to just 282,798 bpd, sources said on Monday.

NCOC did not reply to a Reuters request for comment.

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Reporting by Reuters Editing by David Goodman and David Evans

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