CPC forecasts decrease in oil exports due to decline in output at Tengiz

The CPC is forecasting its oil exports to decrease this year due to a 7% decline in output at the Tengiz field / Photo: gov.kz, photo editor: Arthur Aleskerov

According to the Caspian Pipeline Consortium (CPC) forecast, the volume of oil going through the pipeline will decrease due to a 7% decline in expected output at 70 million tons of oil at the Tengiz field.

«As the updated forecast shows, oil output is going to decline by 7% this year compared to figures we have budgeted based on preliminary applications from freight forwarders. We are expecting a decline of 7.9 million tons from Tengiz and an increase of 3.3 million tons from Kashagan. The overall deviation from planned volumes is negative 4.8 million tons,» the CPC said in a statement.

On May 28-29, 2024, shareholders of CPC-R (Russia) and CPC-K (Kazakhstan) are holding their annual meetings in Samarkand, Uzbekistan.

As General Director of CPC Nikolay Gorban reported to the shareholders, since the beginning of the year, the company has exported 26.7 million tons of oil compared to 25.92 million in the same period last year. Over the period from January 1 to May 24, 244 tankers were loaded with oil in the seaport of Novorossiysk, which is five vessels more than in the previous year.

The CPC is planning to boost its consolidated revenue from $2.3 billion in 2023 to $2.5 billion this year. In 2023, the CPC-K reported $460 million in revenue with $173.8 million of net profit.

According to Gorban, the year 2023 was astonishing for the company in terms of oil exports as it transported 63.5 million tons of oil – an all-time record for the CPC – including 56 million tons from Kazakhstan freight forwarders.

He also noted that the company received applications from oil senders for more than 70 million tons this year. In Russia and Kazakhstan, the company is going to spend $159 million and $40 million, respectively, for capital expenditures.

In 2023, the CPC exported 56.052 million tons of Kazakhstani oil compared to 52.2 million tons in 2022.

Last year, Tengiz, Karachaganak and Kashagan accounted for the biggest volumes of oil sent to the pipeline system of the CPC: 27.5 million tons, 9.6 million tons and 17.9 million tons, respectively.

The 1,511-kilometer Tengiz-Novorossiysk pipeline exports about 80% of all oil produced in Kazakhstan along with oil from Russian fields, including those in the Caspian Sea. The CPC’s seaport is equipped with three single-point moorings for loading tankers safely during bad weather.

The CPC is controlled by Transneft (24%) on behalf of the Federal Agency for State Property Management (trust management), CPC Company (7%), KazMunayGas (19%), Kazakhstan Pipeline Ventures LLC (1.75%), Chevron Caspian Pipeline Consortium Company (15%), LukArco B.V. (12.5%), Mobil Caspian Pipeline Company (7.5%), Rosneft-Shell Caspian Ventures Limited (7.5%), BG Overseas Holdings Limited (2%), Eni International N.A. N.V. S.ar.l. (2%) and Oryx Caspian Pipeline LLC (1.75%).