Register with us today

and in less than 60 seconds continue your access to:Latest news headlinesAnalytical topics and featuresCommodities videos, podcast & blogsSample market prices & dataSpecial reportsSubscriber notes & daily commodity email alerts

Already have an account?

Log in to register

Forgot Password

Please Note: Platts Market Center subscribers can only reset passwords via the Platts Market Center

Enter your Email ID below and we will send you an email with your password.


  • Email Address* Please enter email address.

If you are a premium subscriber, we are unable to send you your password for security reasons. Please contact the Client Services team.

If you are a Platts Market Center subscriber, to reset your password go to the Platts Market Center to reset your password.

In this list
Oil

Kazakhstan adds Kashagan crude oil to surging Siberian Light exports

Oil | Crude Oil | Oil Risk | Shipping | Marine Fuels | Tankers

Saudi shut-in after attacks, and an exploding scrubber: just another week in oil

Oil

Platts Market Data – Oil

Commodities | Oil | Crude Oil

Middle East Executive Petroleum Conference (MEEPEC)

Oil | Crude Oil

Saudi Arabia looking to buy Iraqi crude in wake of recent attacks: sources

Kazakhstan adds Kashagan crude oil to surging Siberian Light exports

London — Kazakhstan has for the first time shipped Kashagan crude in the form of Siberian Light blend from the Russian port of Novorossiisk, the Kazakh state pipeline company has said, amid a surge in Siberian Light exports.

Not registered?

Receive daily email alerts, subscriber notes & personalize your experience.

Register Now

In a statement on its website, KazTransOil said Kashagan crude was loaded on to the New Amorgos tanker at Novorossiisk on February 28, "mixed" with Siberian Light. Poor weather at the Black Sea port had prevented earlier shipment.

The crude was transported from the Kashagan field through KazTransOil's pipeline to southern Russia and on to Novorossiisk using the Russian state's Transneft system "in the common flow of" low-sulfur Siberian Light, the statement said.

Siberian Light loadings in March are scheduled to reach a multi-year high of over 150,000 b/d.



The start of production from the vast Kashagan field in October has already contributed to a surge in shipments of Kazakhstan's main export blend, CPC, which also comprises crudes such as Tengiz and Karachaganak and is lighter and less sulfurous than Siberian Light.

CPC has its own pipeline system across southern Russian from Kazakhstan and a different ownership from the Transneft system.

However the partners at Kashagan, which include the Kazakh state and China's CNPC, are able to choose their own export methods.

KazTransOil's statement noted that Kashagan crude had been shipped through the Transneft system before, but mixed in to less profitable Urals crude.

The statement said output from other Kazakh light oil fields could also be exported as Siberian Light, although it did not specify which fields.

One possible source of Kazakh light oil could be independent Nostrum Oil and Gas's Chinarevskoye field in the far northwest of the country.

Nostrum, which produced 16,000 b/d of liquids last year, plans to commission a new connection to the KazTransOil system in the second quarter of this year, and hopes to increase its output.

The Kashagan development had proved a major headache for the oil industry, coming on stream a decade late, after a debacle in 2013 in which pipelines were found to be leaking. Development costs so far have exceeded $55 billion.

However it is now expected to lift Kazakh oil output after a period of stagnation, with production recently reaching 180,000 b/d.

Kazakhstan expects to increase its oil output by 3 million mt to 81 million mt, or roughly 1.63 million b/d, this year, despite its participation in an OPEC-led production cut due to expire at the end of June.

--Nick Coleman, nick.coleman@spglobal.com
--Edited by Alisdair Bowles, alisdair.bowles@spglobal.com