Kazakhstan’s Tengiz Oilfield Closure Extended 7-10 Days, Sources Confirm
Oil production at Kazakhstan’s Tengiz oilfield has been halted since January 18 due to a fire at the GTES-4 power station. Industry sources indicate that this suspension could extend for an additional 7 to 10 days, impacting the region’s crude exports.
Tengiz Oilfield Shutdown Details
The operator, Tengizchevroil (TCO), announced the temporary suspension of production at both the Tengiz and Korolevskoye fields. This decision was made as a precaution following the incident that affected the site’s power supply.
- Incident Date: January 18, 2023
- Shutdown Duration: Possible extension of 7-10 days
- Cancelled Cargoes: Five export cargoes totaling 600,000 to 700,000 metric tons
Impact on Oil Exports
The closure has disrupted exports through the Caspian Pipeline Consortium (CPC). Despite this setback, overall oil production in Kazakhstan has remained stable, as other oil fields ramped up output.
Other Oil Fields’ Performance
As the Tengiz field suffered production cuts, other fields like Kashagan and Karachaganak increased their extraction rates:
| Field | January 1-19 Production (bpd) | Increase from Early January |
|---|---|---|
| Kashagan | 197,000 | 28% |
| Karachaganak | 156,000 | 21% |
| Tengiz | 360,000 | 6% |
Despite the production issues, the increase in output from other producers has helped to mitigate the impact of Tengiz’s closure on Kazakhstan’s total oil production.
Further Developments
TCO, which is primarily owned by Chevron, has not disclosed specific details regarding the cause of the fire or an anticipated date for resuming operations. They have confirmed their commitment to safety and operational integrity during this period.
The disruption highlights the vulnerability of oil production infrastructure in Kazakhstan, particularly in light of ongoing challenges affecting the CPC and related export routes.
As Kazakhstan navigates through these operational challenges, industry observers remain vigilant about the potential long-term implications for the country’s oil export capabilities.
