Kazakhstan adjusting down its 2026 oil output due to field maintenance

Kazakhstan said on Thursday that it was adjusting down 2026 oil production plans due to expected maintenanceat major oilfields and amid major damage from a Ukrainian drone attack on the Black Sea terminal used by the Caspian Pipeline Consortium (CPC).

Ukraine has stepped up attacks on Russian energy infrastructure since August in an effort to hurt funding for Russia's army, but the strike on CPC facilities last month has been condemned by Kazakhstan and the Kremlin.

"Obviously, three large-scale maintenances are expected - the plans will be adjusted," Energy Minister Yerlan Akkenzhenov said about Kazakhstan's oil production plans for 2026, while also saying that the plans for this year stay intact.

Kazakhstan produces oil at three major fields: Tengiz, Karachaganak and Kashagan, operated by international oil majors.

The CPC, which accounts for 1% of global crude supply and includes Russian, Kazakh and U.S. shareholders, has had to reduce exports because a key part of its loading infrastructure - a single-point mooring (SPM) - was damaged in the attack.

CPC also accounts for around 80% of Kazakh oil exports, while Kazakhstan was forced to divert some oil to other routes, including to China.

The minister also said that maintenance of the now idle single point mooring (SPM-3) of the CPC terminal will be completed by December 15, though shipments via the CPC are now seen declining this year to around 68 million metric tons from previously expected 72 million tons.

He also said the SPM-2, which was hit in the November 29 attack, was severely damaged. Currently only SPM-1 is operational.

Options for re-routing oil from landlocked Kazakhstan are limited as Russia's pipeline system is stretched after repeated drone strikes on its refineries and export facilities.

-Tamara Vaal