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Kazakhstan Resumes Oil Production in Caspian Sea

Kazakhstan Resumes Oil Production in Caspian SeaKazakhstan Resumes Oil Production in Caspian Sea

Production at the giant Kashagan oilfield in Kazakhstan's sector of the Caspian Sea restarted Sunday following the completion of scheduled maintenance, a source with a partner in the field's development told S&P Global Platts Monday.
A source with an East Asian buyer of Kazakhstan's light sweet CPC Blend crude welcomed the news of the restart amid tightening supply in global oil markets. "Amid tightening supplies, we are grateful for the increasing supply of CPC [Blend crude] as a supply candidate," the source said.
CPC Blend is a light grade produced in western Kazakhstan with a specific gravity of around 44-45 API and a sulfur content of 0.5%-0.6%. The grade is exported through the 1,580 km CPC pipeline to an export terminal near Novorossiysk on Russia's Black Sea coast. Kashagan last year became the second largest source of CPC Blend crude, overtaking Karachaganak.
CPC Blend exports in May will likely start recovering after volumes in April were the lowest for the grade since October 2016 due to the maintenance at Kashagan.
The Kashagan oilfield was producing at around 340,000 barrels per day prior to its about 45-day maintenance from mid-April, an official with Inpex, which holds a 7.56% stake in Kashagan via subsidiary Inpex North Caspian Sea, said.

 

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