Kazakhstan may reduce oil production by 320,000 barrels/day by the end of April due to restoration works on the Caspian Pipeline Consortium (CPC) and compensate for the cuts within the OPEC+ cooperation agreement until the end of June, the Energy Ministry said on Tuesday
ALMATY (Pakistan Point News / Sputnik - 29th March, 2022) Kazakhstan may reduce oil production by 320,000 barrels/day by the end of April due to restoration works on the Caspian Pipeline Consortium (CPC) and compensate for the cuts within the OPEC+ cooperation agreement until the end of June, the Energy Ministry said on Tuesday.
"Due to the maintenance works at the CPC pipeline Kazakhstan may lose about 320 thousand barrels/day ... in April. This volume will be a part of compensation plan within OPEC+ cooperation," the statement said.
The statement went on to say that Kazakhstan will "entirely compensate its production volumes within OPEC+ cooperation by end of June 2022."
Last week, Caspian Pipeline Consortium announced that oil transport through the terminal would be reduced after a heavy storm damaged two facilities. The pipeline transports 67 million tonnes of oil a year (around 1.2 million barrels daily, or 1.2% of the global demand for oil) and is a crucial international export route, partially owned by Kazakhstan, Russia, and the US's Chevron.
The CPC is a joint-venture to transport Caspian oil from the Tengiz field to the Novorossiysk-2 Marine Terminal on Russia's Black Sea coast. It is also a major export route for oil from the Kashagan and Karachaganak fields. With sanctions and other curbs on Russia already depriving global oil markets of an estimated 3 million barrels per day in supply, the drop in the CPC flows weighed heavily on the nerves of oil traders, analysts said.
