CPC Terminal Delays Slow Tengiz Oil Production Recovery
Output at the Tengiz field rose to 790,000 barrels per day yesterday but remains below targets. Delays at the CPC terminal are slowing the recovery process.
The recovery of crude oil production at the vast Tengiz field in Kazakhstan[Country:{ "assets":{ "country":"KZ" } }] is progressing more slowly than anticipated. Industry sources indicate that loading disruptions at the Caspian Pipeline Consortium (CPC) marine terminal near Novorossiysk, Russia[Country:{ "assets":{ "country":"RU" } }], have created a bottleneck for exports. This slowdown follows a series of challenges for the Central Asian nation’s energy sector, including recent power outages at the field and security concerns stemming from drone activity linked to the conflict in Ukraine[Country:{ "assets":{ "country":"UA" } }].
According to data from industry insiders, oil output at Tengiz rose to 790,000 barrels per day (bpd) on February 24, an increase from 660,000 bpd the previous day. Despite this progress, the volume remains significantly below the planned target of 950,000 bpd. Current calculations suggest that production at the supergiant field is trailing forecast levels by approximately 17%.
The field is operated by Tengizchevroil (TCO), a joint venture led by the United States[Country:{ "assets":{ "country":"US" } }]-based Chevron Corporation[Symbol:{ "assets":{ "symbol":"CVX" } }]. While the operator recently stated that production was being ramped up in stages following a transformer fire and subsequent power failure in January, technical readiness at the site is being undermined by logistical constraints at the CPC terminal.
One of the sources noted that Tengiz was technically ready to meet this schedule, but oil intake into the CPC system was restricted due to delays with tanker loading at the consortium’s Black Sea terminal in Yuzhnaya Ozereyevka near Novorossiysk.
Loading schedules at the terminal have reportedly been delayed by roughly five days. Sources suggest that a lack of available tank storage has prevented the system from absorbing the production increase, forcing a limitation on oil intake. These delays are attributed to a combination of stormy weather in the Black Sea and mandatory underwater vessel inspections, which were introduced at Russian ports in 2025 as a safety measure. Neither Tengizchevroil nor the CPC press services provided immediate comments on the current situation.
The instability in export reliability has had a direct impact on market pricing. Discounts for the CPC Blend have widened to their deepest levels against dated Brent since late 2022, as buyers express frustration over the inconsistent supply. While the CPC system remains the primary export route for Tengiz crude, some volumes are being diverted through alternative channels, including the Baku-Tbilisi-Ceyhan pipeline and shipments to Germany[Country:{ "assets":{ "country":"DE" } }] via the Druzhba pipeline.
