Kazakhstan’s Karachaganak field producing oil and gas condensate has curbed production after what it referred to as “an incident” at a gas processing plant in Russia, which was hit by a Ukrainian drone on Monday.
The Karachaganak Venture operating the field confirmed it reduced output in an emailed statement to Reuters on Tuesday.
Italy’s energy giant Eni and UK-based supermajor Shell are joint operators of the Karachaganak Venture, with each holding a 29.25% interest in the venture. U.S. supermajor Chevron and Russia’s second-largest oil producer, Lukoil, hold interests of 18% and 13.5%, respectively. Kazakhstan’s national company KazMunayGas has a 10% stake in the venture.
On Monday, reports emerged that a Ukrainian drone attack had halted gas processing at Russia’s Orenburg complex, one of the biggest in the country.
Gas extracted in northwest Kazakhstan flows north for processing before returning for domestic use or export. When Orenburg stops, Karachaganak’s condensate and gas production both fall, threatening more than 250,000 barrels per day of oil-equivalent output.
Neither the operator of Karachaganak nor the Kazakh Energy Ministry have provided data on how much production had been curbed.
Anonymous sources told Reuters on Monday that production at Karachaganak fell to below 200,000 barrels per day of oil equivalent.
Despite the halt at the Orenburg processing plant in Russia, Kazakhstan’s gas supply remains uninterrupted, the Kazakh Energy Ministry said on Monday, refuting reports of the contrary in the Kazakh media.
“The suspension of operations at the Orenburg Gas Processing Plant has had no effect on gas exports to Kazakhstan,” the Kazakh ministry said in a statement carried by Russian news agency Interfax.
“The stability of supply is guaranteed by reserve mechanisms which have been put in place in advance. Any portion of the planned volume which is not supplied is promptly substituted under existing contracts, and there is therefore no gas deficit for domestic consumers, including thermal power plants in the capital, nor are any deficits predicted,” Kazakhstan said.
By Charles Kennedy for Oilprice.com
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