Unforeseen maintenance at Tengiz led to a decrease in production.
Tengiz Oil Field Faces Production Decrease due to Maintenance
A production decline at the Tengiz oil and gas field, a key asset in Kazakhstan, has been reported by the Ministry of Energy's press service. The decrease is attributed to unscheduled repairs on one of the six technological lines.
The statement from the Ministry clarified that production on this particular line would resume after the completion of the necessary maintenance work. It's important to note that despite this setback, the ministry highlighted that Tengiz's production plan has surpassed its target by 2% since the beginning of the year, due to stable operations.
Recent developments at the Tengiz field have been under close scrutiny, given its significant contribution to Kazakhstan's overall oil production, accounting for about 932,000 barrels per day (bpd). However, the country has been facing scrutiny from the OPEC+ organization due to overproduction, and is obligated to compensate for excess production by June 2026.
Lower oil prices have offset the recent increase in oil production, impacting the national oil fund's revenue, which fell by 43% as of April 2025. As for the future production plan, Tengizchevroil has no plans to increase oil production further this year, given that it has reached its targeted capacity. The current economic situation may influence future production strategies, taking into account potential economic fallout from OPEC+ decisions.
Also worth noting:
- Kazakhstan to Reduce Oil Production Plan for the Next Two Years: The government plans to reduce its oil production plan in response to the overproduction issue and OPEC+ obligations.
- Russia Claims Kazakhstan Cannot Replace Russian Oil Supplies to Germany: Tensions between Russia and Kazakhstan regarding oil supplies and market shares have emerged, impacting geopolitical oil dynamics.
- Impact of Kashagan Pipeline Shutdowns on Kazakh Oil Exports in 2022: Although not directly related to the recent developments at Tengiz, issues with the Kashagan pipeline have previously affected Kazakh oil exports.
- Repairs Completed at Atyrau Refinery: Separately, the Atyrau refinery has completed repairs, which may contribute to a more stable overall oil production picture in Kazakhstan.
The maintenance work at Tengiz oil and gas field, a major player in Kazakhstan's industry and finance sector, is causing a temporary decrease in production, affecting the energy sector as well. Despite this, Tengiz's overall production plan for the year has already surpassed its target by 2%, showcasing the field's resilience and contributions to the oil-and-gas industry.
