Key facts
- Kazakhstan is considering alternative oil export routes through Azerbaijan, Georgia, and Turkey.
- Ukrainian drone attacks have targeted Russia's Novorossiysk oil export terminal, disrupting Kazakh shipments.
- The Caspian Pipeline Consortium (CPC) route, which handles most of Kazakhstan's crude exports, has experienced multiple suspensions.
- International oil firms including Chevron, ExxonMobil, Shell, and Eni have stakes in Kazakh oil fields and CPC.
- Kazakhstan is also exploring increased pipeline supply to China.
Kazakhstan is evaluating new export routes for its crude oil, including pipelines via Azerbaijan, Georgia, and Turkey, as Ukrainian drone attacks on Russia's Novorossiysk Black Sea port continue to disrupt shipments. The Kazakh Ministry of Energy confirmed that transportation through the Baku-Tbilisi-Ceyhan system, shipments across the Caspian Sea via Azerbaijan, and the Baku-Supsa route are under consideration.
These disruptions, which have led to multiple suspensions of flows through the Caspian Pipeline Consortium (CPC) in recent weeks, highlight Kazakhstan's vulnerability due to its reliance on Russian export terminals. The CPC pipeline, operated by a consortium where Russia is the largest shareholder with a 24% stake, transports crude from major Kazakh oil fields like Tengiz, Kashagan, and Karachaganak, in which international firms such as Chevron, ExxonMobil, Shell, and Eni hold stakes. Affiliates of Chevron and ExxonMobil are also minority shareholders in CPC.
The repeated targeting of Russian energy infrastructure by Ukrainian forces has led to significant supply risks, with a recent week-long shutdown briefly removing over 1 million barrels per day of Kazakh production from the market. In addition to exploring western routes, Kazakhstan is also working on increasing its eastward pipeline supply to China.