Kazakhstan Tengiz maintenance set to limit CPC crude volumes to September

Production at Kazakhstan's highest-producing crude oil field, Tengiz, is reduced due to planned maintenance, the operator of the field, Chevron-led Tengizchevroil, said Aug. 4 after the operator of the CPC export pipeline reported reduced volumes.

The confirmation of maintenance at one of the plants at Tengiz follows notice of a "significant" reduction in throughput of CPC Blend by the operator of the export pipeline on Aug. 3.

The CPC pipeline consortium also said there was a stoppage at the second-highest contributing field, Kashagan. however, the operator of that field had yet to comment. The Kashagan operator recently completed a maintenance shutdown.

Volumes of CPC Blend, which loads at the Russian port of Novorossiisk on the Black Sea, are typically in the region of 1.3 million-1.5 million b/d, with the naphtha-rich crude particularly sought as petrochemical feedstock.

"During August and September 2022, Tengizchevroil is undertaking maintenance turnaround activities at one of its plants at the Tengiz field. The planned turnaround activities, which are aimed at maintaining the reliability and safety of the plant equipment, are conducted in accordance with [Kazakh] legislation and in alignment with international oil and gas standards," TCO said in a statement.

CPC Blend was assessed at a $5/b discount to Dated Brent on Aug. 3, unchanged on the day.

A CPC loading program for August seen by Platts in early July suggested strong flow levels, at around 1.4 million b/d.

CPC loadings are exempt from sanctions against Russia due to the mainly Kazakh origin of the crude, the route being Kazakhstan's main outlet to global markets.

However, a series of disruptions have worried markets and foreign governments in recent months, including a shutdown attributed to storm damage at the terminal in March, and a court ruling in July relating to a 2021 oil spill that ordered a suspension of loadings, although this was overturned on appeal.

Tengizchevroil is undertaking a major expansion project at Tengiz that is due for completion in the first half of 2024 and expected to lift crude output to 850,000 b/d.

In a July 29 conference call, Chevron upstream executive vice president Jay Johnson said of the CPC export route, "There are some alternate export routes being developed, but CPC remains the primary and most important route for us."