CPC shutdown costs Kazakhstan $32 million daily

According to Reuters, Kazakhstan’s oil production has fallen by more than 20% following the shutdown of the Caspian Pipeline Consortium’s (CPC) Black Sea terminal. Oil and gas industry expert Olzhas Baidildinov estimates the losses at about $32 million per day.

Citing sources familiar with the matter, Reuters reported that following the attacks on the CPC and the closure of the marine terminal, oil production fell to 1.63 million barrels per day on July 22. This represents a 21.3% decline from July’s average production of 2.07 million barrels per day.

The largest decline was recorded at the Tengiz oil field, where production fell from 925,000 barrels per day to 406,000 barrels per day.

Baidildinov estimates that a 20% drop in daily production results in roughly $32 million in losses each day for Kazakhstan’s oil sector and state budget.

The CPC marine terminal, a main export route for approximately 80% of Kazakhstani oil, has begun restricting oil deliveries as tanker operators have become reluctant to send vessels to the facility.