On Tuesday, Russia reported a 30-40% reduction in the oil flows through the Caspian Pipeline Consortium (CPC) due to a drone attack on a pumping station in southern Russia. This incident, with no casualties, occurred just before U.S. and Russian officials engaged in talks to end the war in Ukraine. Following the meeting, excluding Kyiv, the U.S. administration confirmed an agreement to hold further discussions.
Russian Deputy Prime Minister Alexander Novak stated that the attack damaged crucial energy equipment, leading to the drop in oil volumes. The pipeline, over 1,500 km in length, transports crude from Kazakhstan's Tengiz oilfield and Russian producers, impacting global supplies.
If the 30% cut in CPC shipments persists, it could reduce output by up to 380,000 barrels per day. Kazakhstan, heavily relying on the pipeline, may need to curtail exports. Despite the incident, the CPC reassured that oil transportation to the Black Sea did not cease, albeit at reduced levels, bypassing the damaged station.
Chevron-led Tengizchevroil (TCO) stated that oil production and exports via the pipeline remained unaffected, monitoring the situation closely. Although Kazakhstan's energy ministry confirmed ongoing oil supply without constraints, acknowledging operations bypassing the affected pumping station.
The drone attack on the CPC pumping station in Russia's Krasnodar region caused significant damage, as confirmed by Transneft. The Ukrainian armed forces claimed responsibility for targeting Russian energy infrastructure to disrupt Russia's military operations. In response, Russia launched a large-scale assault in various Ukrainian regions.
Oil prices surged above $75 a barrel, impacting stakeholders of the CPC, such as U.S. companies Chevron and Exxon Mobil, and Russian and Kazakh state entities.