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Petroleum industry

Kazakhstan Seeks Major Expansion to Handle Expected Oil Surge

Strategic Insights

— 1 min read

As the offshore Kashagan field prepares to enter full production, Kazakhstan is facing a significant increase in oil exports, sparking a need for major expansions in its export capacity, according to Chevron. The country's vice president, Ian MacDonald, stated that Kazakhstan requires new, dedicated, and reliable export capacity to handle the anticipated production levels, which are expected to rise by a minimum of over 1.5 million barrels per day over the coming 15 years. The Kashagan field, one of the largest oil discoveries in the past three decades, lacks an export pipeline, with plans for a new system to bring oil from western Kazakhstan to Caspian ports and on to oil transit routes in Azerbaijan still in the works.

Key Takeaways:

  • Kazakhstan's oil exports are expected to surge by a minimum of over 1.5 million barrels per day over the coming 15 years, due to the offshore Kashagan field entering full production.
  • The country lacks an export pipeline to handle the increased exports, with plans for a new system still in development.
  • Kazakh oil made its debut through the Baku-Tbilisi-Ceyhan oil pipeline in November, with a promise of 120 million barrels of oil per year.
  • Chevron estimates that Kazakhstan needs new, dedicated, and reliable export capacity to cope with the anticipated production levels.
  • The Kashagan field is one of the largest oil discoveries in the past three decades and lacks an export pipeline.
  • Plans are in the works for an export system to bring oil from western Kazakhstan to Caspian ports and on to oil transit routes in Azerbaijan.
  • The Baku-Tbilisi-Ceyhan oil pipeline is the world's second longest and marked the first time crude oil outside Azerbaijan transited through the pipeline.

Statistics:

  • 1.5 million barrels per day: The minimum expected increase in oil exports over the coming 15 years.
  • 15 years: The projected time frame for Kazakhstan's oil exports to surge by a minimum of over 1.5 million barrels per day.
  • 120 million barrels per year: The promise of oil exports through the Baku-Tbilisi-Ceyhan oil pipeline.
  • 3 decades: The time period since the Kashagan field was discovered, making it one of the largest oil discoveries in the past three decades.

Sources:

  • The Wall Street Journal
  • Asia Pulse, ASTANA, Feb 24
  • Kazakh oil made its debut through the Baku-Tbilisi-Ceyhan oil pipeline (TCA) 24-02 1743

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