Kazakhstan cuts oil output after Russian terminal hit by Ukrainian drones

Kazakhstan is temporarily reducing its oil output due to escalating security risks in Russia's Black Sea port of Novorossiysk. The Caspian Pipeline Consortium (CPC) terminal there, crucial for exporting Kazakh oil, has become a frequent target for Ukrainian drone attacks.

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The current decision to reduce the extracted oil volume is a temporary measure, the ministry said in a statement.

The Energy Ministry in Astana announced the decision, citing the need to ensure the safety of vessels, crews, and the environment. The loading of oil at the terminal has been temporarily suspended. While the technical facilities remain operational, they are ready to resume service once the situation stabilizes.

Discussions are ongoing between Kazakhstan, the CPC, shipping companies, and government bodies to develop solutions for safe navigation and the swift resumption of stable oil exports to global markets. Ukraine's drone attacks on Russian energy infrastructure aim to disrupt oil exports that fund Moscow's war.

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Currently, loading is 'temporarily suspended to ensure the safety of ships, crews, and the environment in the Black Sea region'.

Kazakhstan had recently increased its production amid global energy market tensions driven by the conflict in the Middle East. This production cutback highlights the vulnerability of key energy transit points to geopolitical conflicts.

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Continuous consultations are underway to prepare solutions that ensure safe shipping conditions and resume stable export of Kazakhstan's oil to world markets as soon as possible.