Karachaganak reports sharp decline in oil output due to a storm in the Black Sea

Oil output at Karachaganak sharply dropped due to a storm in the Black Sea / Photo: kmg.kz, Shutterstock and Freepik

According to the Situational-Analytical Center of Fuel Energy Complex, oil output at the Karachaganak oil field has declined by 34% to 23,800 tons per day over the past several days.

«Karachaganak Petroleum Operating (KPO) reported a decline in oil output right after Tengizchevroil and the North Caspian Operation Company (NCOC) did so. The decline in production was caused by a Caspian Pipeline Consortium decision to stop oil loading operations due to bad weather in the port of Novorossiysk. On November 29, KPO reported a 34% decline in oil output from 36,000 to 23,800 tons per day, while Tengizchevroil and NCOC reported declines from 83,400 to 27,200 tons (-67%) and from 54,000 to 18,600 tons per day (-65%), respectively,» the analytical center said in a statement.

As the center noted, on November 29, Kazakhstan produced 153,800 tons of oil and 107.9 million cubic meters of gas; 212,300 tons of oil and 152 million cubic meters of gas on November 27; 214,500 tons of oil and 154.9 million cubic meters of gas on November 26, while on November 25, the country produced 253,100 tons of oil and 175.5 million of cubic meters of gas.

Kashagan, which is another big oil field in Kazakhstan, reported a 38% decline in oil output (to 33,000 tons per day) due to a storm in the Black Sea, the analytical center reported. Tengizchevroil which runs the Tengiz oil field cut its oil output from 84,000 to 39,000 tons per day, according to Shyngys Ilyasov, adviser to the country’s energy minister.

The Karachaganak oil field discovered in 1979 is one of the biggest gas condensate fields in the world. The production-sharing agreement signed by the government of Kazakhstan and foreign investors implies that the field is going to be exploited until 2038. The project’s investments have surpassed $29.8 billion since the moment the agreement was signed. Among the KPO shareholders are: Eni S.p.A. (29.25%), Shell Plc (29.25%), Chevron (18%), Lukoil (13.5%) and KazMunayGas (10%).