Oil Exports - The Times Of Central Asia

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Oil Exports

Push for Kazakhstan Oil Exports Diversification as CPC Disruptions Expose Capacity Gap

Kazakhstan has spent years looking for more ways to export its oil without relying so heavily on Russia. This summer has shown how difficult that remains. Shipments to Germany through the Druzhba pipeline have been suspended since May, disruptions on the Black Sea in July forced Tengiz to more than halve production, and now Russia is rerouting Kazakh crude from Ust-Luga to Novorossiysk to free Baltic capacity for its own oil. The shift comes as exports from Russia’s western ports ran 15% below plan in the first half of August, with Novorossiysk shipments of Russian Urals and Kazakh KEBCO falling to around 400,000 barrels per day. At least two cargoes of Kazakhstan’s KEBCO crude scheduled for loading at Ust-Luga in late August will instead be shipped through the Black Sea. No KEBCO loadings are currently planned at the Baltic port in September. The move will free up about 100,000 barrels per day of export capacity at Ust-Luga for Russian crude. Kazakh producers support the arrangement because shipments through Novorossiysk are currently more profitable. From a commercial standpoint, the decision is understandable. But Ust-Luga and Novorossiysk give Kazakhstan access to two different seas while remaining Russian ports. And Novorossiysk, where the KEBCO cargoes are now being redirected, had itself suspended crude loadings only a few days earlier. On August 14, loadings at the Sheskharis terminal, Novorossiysk port’s main oil-export facility, were halted following a drone attack. The facility handles around 700,000 barrels per day and loads Russian Urals and Siberian Light as well as Kazakhstan’s KEBCO. Operations resumed on August 16, and one of the first tankers to load was carrying Kazakh crude. Another 80,000-ton KEBCO cargo was due to begin loading on August 18. Kazakhstan’s far larger vulnerability, however, is the Caspian Pipeline Consortium. Its marine terminal near Novorossiysk is separate from Sheskharis. In 2025, the country exported 78.7 million metric tons of oil, of which 64.8 million tons were shipped through CPC. Volumes through the pipeline rose by 18% compared with 2024, largely as production increased following the Tengiz expansion. The July disruptions showed how quickly problems on that route can affect production inside Kazakhstan. After drone attacks near the CPC terminal forced restrictions on loadings, Kazakhstan’s oil and gas condensate production fell by about 21% by July 22 to roughly 1.63 million barrels per day, from a July average of 2.07 million barrels per day. Tengiz output dropped from a July average of around 925,000 barrels per day to about 406,000. A few days later, the situation deteriorated further. On July 26, Kazakhstan produced around 1 million barrels per day of oil and gas condensate, down from an average of 2.16 million barrels per day in June. Tengiz, Kashagan, and Karachaganak all had to reduce production. On July 27, CPC resumed loadings after a week-long suspension. CPC accounts for more than 80% of Kazakhstan’s oil exports, so replacing it quickly with other routes is impossible. The pipeline typically carries around 1.5 million to 1.7 million barrels per day....

Caspian Pipeline Consortium

Vance Personally Asked Zelensky to Halt CPC-Linked Tanker Strikes, FT Reports

U.S. Vice President JD Vance personally asked Ukrainian President Volodymyr Zelensky on July 31 to halt attacks on oil tankers serving the Caspian Pipeline Consortium’s Black Sea terminal near Novorossiysk, the Financial Times reported on August 12. Citing Ukrainian officials and others familiar with the call, the newspaper said Kyiv had agreed not to target CPC infrastructure or non-Russian vessels unless they were under Ukrainian sanctions or carrying Russian oil or other Russian cargo. Ukraine has not struck tankers near the CPC terminal since the July 31 call. Vance’s intervention came after repeated July attacks had disrupted Kazakhstan’s main oil-export route, halted loading several times, and forced producers to cut output. Washington was also concerned that the attacks were destabilizing oil markets and harming U.S. commercial interests. A U.S. official confirmed to the FT that Washington had warned Kyiv against attacks on non-Russian vessels and CPC infrastructure, describing the pipeline as “a vital conduit of Kazakhstan-origin energy for European markets” and an alternative to Russian energy supplies. The latest incidents before the call came on July 30, when two more tankers were attacked. NISSOS SIFNOS was struck while loading Tengizchevroil crude at CPC’s SPM-3 mooring, while MARATHI was attacked while awaiting a berth about six nautical miles offshore, forcing CPC to stop loading again. The Vance-Zelensky call took place the following day. Washington had already warned Kyiv about attacks affecting U.S. and Kazakh economic interests. Ukraine’s ambassador to Washington at the time, Olha Stefanishyna, disclosed in February that the State Department had delivered a formal démarche after an earlier strike on Novorossiysk. On July 23, Representative Bill Huizenga, chair of the House Foreign Affairs Subcommittee on South and Central Asia, told TCA that Ukraine had an obligation to avoid legitimate allied energy exports and infrastructure, and that further strikes would "not be tolerated." The Wall Street Journal later reported that Chevron CEO Mike Wirth had raised the tanker attacks with Trump administration officials, after which Washington cautioned Ukraine against targeting non-Russian vessels in the Black Sea. By early August, the disruption was showing clearly in export data. Reuters reported on August 7 that CPC loadings in July fell more than 20% behind schedule to around 1.2 million to 1.3 million barrels per day. The reduction amounted to a loss of about 400,000 barrels per day of CPC Blend from international markets in July. Kazakhstan’s oil production fell 14% in July from June. CPC is the dominant route for Kazakhstan’s oil exports and normally handles roughly 1.5 million to 1.7 million barrels per day. The 1,511-kilometer pipeline runs from the Tengiz field through Russia to the Black Sea. Its shareholder structure also gives U.S. companies a substantial direct interest: Chevron owns 15%, while Mobil Caspian Pipeline Company, an ExxonMobil affiliate, owns 7.5%. Responsibility for the individual tanker attacks has remained politically sensitive. Russia has blamed Ukraine. Kyiv has not publicly claimed responsibility for attacks on vessels carrying predominantly Kazakh crude. According to the FT, the July 31 call resulted in a...

Caspian Pipeline Consortium

Black Sea Risks Elevate Azerbaijan and Turkey in Kazakhstan’s Export Strategy

Bloomberg reported on August 8 that the Turkish authorities were withholding or delaying transit permission for some vessels bound through the Dardanelles for Novorossiysk. Some applicants were reportedly told that permits were not being issued, while others faced additional review. The practice appeared selective: vessels bound for some other Black Sea destinations continued to transit, while some Ukraine-bound vessels were also reportedly affected. On August 9, however, Turkish officials told Reuters that shipping through the Turkish Straits was proceeding smoothly and described the actions as temporary security measures rather than an ongoing restriction. The reported restrictions followed a sharp increase in attacks on commercial shipping around the Black Sea, including Turkish-linked vessels near Novorossiysk. Turkey’s Foreign Ministry expressed concern after attacks on the Turkish-owned Yaşar and Nadezhda and called on Russia and Ukraine to ensure navigational safety. Novorossiysk is especially important for Kazakhstan, because the Caspian Pipeline Consortium (CPC) terminal there handles the overwhelming majority of its oil exports. Although the CPC pipeline itself remains operational, the episode showed how quickly traffic serving Kazakhstan’s principal oil-export outlet could face an additional constraint. The events shed light on an export strategy Kazakhstan began developing several years before the current problems. Tokayev’s July 2022 instructions addressed both oil-export diversification through the Trans-Caspian route and alternative transport chains for other cargo. In particular, he called for greater use of Kazakhstan’s Caspian ports and the development of alternative railway routes. Later that year, KazMunayGas (KMG) and SOCAR established a framework for moving Kazakhstani oil from Aktau across the Caspian Sea and onward through the Baku–Tbilisi–Ceyhan pipeline, initially for up to 1.5 million tons annually. Kazakhstan, Azerbaijan, Georgia, and Turkey also adopted a 2022–2027 roadmap to remove bottlenecks along the Middle Corridor. Kazakhstan continued to develop transport links with Russia and China as it expanded Trans-Caspian routes through Azerbaijan, Georgia, and Turkey. The strategy extended Kazakhstan’s longstanding geopolitical multi-vector policy, which balances relations with partners in multiple directions, into the geoeconomic sphere. Tokayev made the combination explicit in his 2023 State of the Nation address. Relations with Turkey had meanwhile been elevated to an enhanced strategic partnership in May 2022, including transport cooperation and the Baku–Tbilisi–Kars railway. Kazakhstan and Azerbaijan deepened their strategic and allied cooperation later that year, likewise emphasizing transport and logistics. Closer ties with Azerbaijan and Turkey widened Kazakhstan’s options without displacing established routes through Russia. The CPC pipeline remains so dominant in Kazakhstan’s oil exports that no other existing route approaches its present scale. Of the 78.7 million tons of oil that Kazakhstan exported in 2025, the Energy Ministry reported the volume moving through the CPC pipeline at 64.8 million tons (the CPC itself reported about 63 million tons), meaning that more than four-fifths of Kazakhstan’s exported oil depended on the CPC system. Kazakhstan moved only about 1.4 million tons through the Aktau–Baku–Ceyhan (ABC) route in 2024, and about 1.3 million tons in 2025. Diversification cannot at present mean replacing CPC. The Baku–Tbilisi–Ceyhan (BTC) pipeline gives Kazakhstani oil a westbound egress...

Caspian Pipeline Consortium

U.S. Reportedly Secures Ukrainian Pledge to Avoid Strikes on CPC Infrastructure

Turkey has begun restricting some commercial vessels from entering the Black Sea on voyages to Novorossiysk, adding a potential new obstacle to Kazakhstan’s oil exports through the Caspian Pipeline Consortium amid reports that Ukraine has agreed to spare CPC infrastructure and qualifying non-Russian tankers from attack. Turkey’s Directorate-General of Coastal Safety has told multiple ships bound for Novorossiysk that it is not currently issuing transit permits for those voyages or needs more time to review applications through the Dardanelles. The authorities have not publicly explained the measure. Some vessels were told the restriction also applied to ships heading to Ukraine, while traffic bound for Bulgarian and Turkish ports continued. There is no confirmation that any tanker scheduled to load Kazakh crude at the CPC terminal has been denied passage. The measure nevertheless comes at a difficult point for CPC, where repeated attacks and stoppages have already made some shipowners reluctant to accept voyages to the terminal near Novorossiysk. On August 7, Reuters reported that CPC loadings fell more than 20% behind schedule in July, to around 1.2 million to 1.3 million barrels per day. That removed about 400,000 barrels a day of CPC Blend from the international market. Loadings averaged roughly 1.1 million to 1.2 million barrels per day in the first week of August, while Kazakhstan’s oil production has fallen 14% from June. CPC normally handles around 1.5 million to 1.7 million barrels per day and carries more than 80% of Kazakhstan’s oil exports. Four tankers completed loading after the July 30 attacks, but operations remained intermittent as tanker availability and security concerns continued to limit the recovery. The Turkish restrictions emerged on the same day as a potentially important change in the security picture around CPC. According to an unnamed U.S. government official cited by Bloomberg, Ukraine has agreed not to target CPC infrastructure or qualifying non-Russian vessels bound for the terminal, provided they are not under Ukrainian sanctions, are not carrying Russian cargo, and are not owned by Russian individuals or entities. Ukraine has also established points of contact through which commercial shippers can provide vessel information and seek safe passage. The arrangement follows months of U.S. pressure over the exposure of Kazakhstan-origin crude and Western commercial interests at CPC. During a July 29 call, U.S. Secretary of State Marco Rubio and Kazakhstan’s Foreign Minister Yermek Kosherbayev discussed the need for “reliable and uninterrupted” exports of Kazakhstan-origin oil through the system. The commitment could reduce one source of risk for ships serving CPC, but it does not immediately resolve the commercial disruption. Previous attempts by companies to identify vessels that should not be targeted did not prevent all attacks, while war-risk insurance and charter costs have risen sharply. Ankara has become increasingly vocal as attacks spread across the Black Sea. Turkey’s Foreign Ministry said the Turkish-owned civilian vessels Yaşar and Nadezhda were attacked by drones on August 3 after leaving Novorossiysk, injuring crew members including Turkish citizens. It warned that further escalation could have broader consequences, including...

Caspian Pipeline Consortium

Shipowners Pull Back from CPC as Export Recovery Falters

The Caspian Pipeline Consortium’s Black Sea export operations have become intermittent once again following a brief restart. Eight trading sources told Reuters that CPC repeatedly suspended operations this week and was closed again on August 5, as safety concerns made shipowners reluctant to accept CPC voyages. Four tankers completed loading after the July 30 attacks, and two had left the terminal area by early this week. Those departures confirmed that cargo could still move, but they did not show that the terminal had returned to normal. Russian transport group FESCO suspended operations in the area on August 4, while one CPC Blend seller needed several attempts to secure a vessel for a recent cargo. CPC declined to comment. Kazakhstan’s Energy Ministry had said on August 1 that a complete shutdown was not under consideration and the situation was under control. A Brief Restart The latest disruption followed two attacks near the terminal on July 30. NISSOS SIFNOS was struck while loading Tengizchevroil crude at single-point mooring SPM-3. MARATHI was hit while waiting about six nautical miles offshore. Both crews were unharmed, fires were extinguished, and no pollution was reported. Chevron told The Times of Central Asia at the time that it was “aware of reports of an incident involving a vessel loading at Caspian Pipeline Consortium (CPC) facilities near Novorossiysk. The safety of personnel, the protection of the environment and integrity of assets are our top priorities.” CPC stopped oil loading after the event, but said its pipeline facilities were operating normally. On July 31, Chevron CEO Mike Wirth said that oil was flowing and tankers were loading. By August 3, four tankers had completed loading at the terminal; two had departed, while at least three more remained nearby. Exports had resumed briefly, but the restart proved fragile. The Energy Ministry said CPC was receiving 100,000 metric tons of crude a day on August 1, equal to about 730,000 barrels per day. “The CPC continues to receive oil from shippers, while storage tanks are being filled,” the ministry said. It added that higher intake depended on tankers arriving on time. The 1,511-kilometer pipeline can continue moving crude into terminal storage while maritime exports slow or stop. If the tanks fill, CPC may have to restrict intake, forcing producers in Kazakhstan to cut output. Freight costs reflected the risk. The daily charter rate for a tanker calling at CPC reached $338,000 by the end of last week, almost double the level from a month earlier. August-loading CPC Blend cargoes were offered this week at nearly $4 a barrel below Brent. The grade had traded at a premium only a few weeks earlier. War-risk insurance for calls at Black Sea terminals has risen to as much as 2% of a vessel’s value, from around 1% two weeks earlier, according to insurance sources. Production Damage Spreads Preliminary operational data put Kazakhstan’s crude oil and gas condensate production for July at 7.6 million metric tons, or about 1.85 million barrels per day. That was...

Caspian Pipeline Consortium

Chevron Says CPC Is Loading Tankers as Kazakhstan Restores Oil Intake

Chevron CEO Mike Wirth said that oil was flowing through the CPC pipeline and tankers were being loaded on July 31, one day after two vessels were attacked near its Black Sea terminal. Kazakhstan’s Energy Ministry said intake reached 100,000 metric tons a day from August 1 and rejected reports of a complete shutdown. “The pipeline is flowing. We’ve been loading ships this week,” Wirth said during Chevron’s second-quarter earnings call. He said two of CPC’s three single-point moorings were in service. The third was undergoing refurbishment and was expected to return during the third quarter. The ministry said CPC temporarily suspended pipeline system operations on July 31 but continued receiving crude and filling storage tanks. A complete shutdown “is not being considered,” it said. Further increases would depend on tankers arriving for loading near Novorossiysk. The two statements indicate that loadings restarted quickly after the July 30 attacks, but do not establish a full return to planned export volumes. CPC can receive crude while storage space remains available, but if tanker loadings fall behind, storage fills and producers must cut output as they did in late July. On August 2, OPEC+ raised Kazakhstan’s September target by 10,000 barrels per day to 1.628 million barrels. The increase formed part of a combined 188,000-barrel-per-day rise for Kazakhstan and six other producers. The group said countries that had exceeded their quotas since January 2024 would make up for the excess by producing less in future months. A separate OPEC+ monitoring committee, which includes Kazakhstan, stressed the “critical importance” of safeguarding international maritime routes and expressed concern about attacks on energy infrastructure. Its statement did not name CPC or the Black Sea incidents. For Kazakhstan, the higher quota may have little immediate effect if export flows remain constrained. Reuters has reported that OPEC+ may pause further increases after September while it reviews production capacity for quota baselines which will apply in 2027. The immediate risk is a repeat of late July, when disrupted loadings filled storage and forced sharp production cuts at Tengiz and other major fields. CPC loadings had resumed on July 27 after a week-long suspension. Three days later, two more tankers were attacked near the terminal. NISSOS SIFNOS was struck while loading Tengizchevroil crude at the SPM-3 offshore mooring, while MARATHI was hit while waiting for a berth about six nautical miles offshore. Both fires were extinguished, and no injuries to the crews or pollution were reported. Neither CPC nor Kazakhstan publicly identified an attacker. Ukraine’s drone forces later said they had struck four Russian tankers in the Black and Azov seas, but did not name the vessels or locations. The earlier stoppage had already demonstrated how swiftly export disruption can reach Kazakhstan’s oilfields. National oil and gas condensate production fell to about one million barrels per day on July 26, less than half the June average of 2.16 million barrels per day. CPC runs for about 1,510 kilometers from western Kazakhstan through Russia to the Black Sea. It handles...