Kazakhstan plans 12% increase in CPC oil exports in March, energy ministry says

MOSCOW, March 4 (Reuters) - Kazakhstan plans to lift its oil supplies via the CPC pipeline, its main exporting route, by 12% in March from February, according to the energy ministry, signalling an increase in the country's output despite efforts to comply with an OPEC+ deal.

Exports are set to rise to 6.7 million metric tons in March from 5.4 million tons in February, Kazakhstan's Energy Ministry told Reuters in a written response to questions. According to industry sources, Kazakhstan's exports via CPC in March 2024 were 4.945 million tons.

The proposed March 2025 total is equivalent to about 1.71 million barrels of oil per day (bpd) of crude oil and gas condensate.

Kazakhstan has often produced oil above the quotas agreed by OPEC+, which includes the Organization of the Petroleum Exporting Countries and allies such as Russia, as it ramps up output at new fields.

Under the terms of a production-curbing deal agreed with the OPEC+ group, Kazakhstan has an export quota of 1.468 million bpd of crude oil only.

The country has pledged to compensate for overproduction by producing less in the future.

The main contributor to the March export increase will be the country's largest oilfield Tengiz, operated by Chevron CVX.N.

The field saw production increase to 904,000 bpd last month from 640,000 bpd in January following completion of maintenance and due to an expansion programme, a source told Reuters on Monday.

Kazakhstan's average daily oil and condensate output in February was 287,000 metric tons per day, or 2.15 million bpd, including 118,000 tons - about 0.9 million bpd - per day produced at the giant Tengiz field, according to the Energy Ministry.

It did not provide the breakdown for production of crude oil and gas condensate, which is excluded from the OPEC+ deal.

The CPC pipeline operated by the Caspian Pipeline Consortium also carries oil from Russian fields. The export plan including Russia's oil exports was seen at 6 million tons in February, or around 1.69 million bpd.

Reuters uses a tons-to-barrels ratio of 7.91 for CPC Blend. For Kazakhstan's total oil and condensate output the ratio is 7.5.

It is not clear if Russian oil supplies to the CPC pipeline will continue in March following an attack on the Kropotkinskaya pumping station. Russia previously said the CPC could reduce flows by 30-40% following the attack.

Kazakhstan's Energy Ministry told Reuters that oil exports via the CPC pipeline and the Black Sea terminal had not been interrupted and were in line with the schedules. It added that there were no plans to redirect CPC oil flows elsewhere.

The Caspian pipeline, which carries more than 1% of daily global supply, stretches more than 1,500 km (939 miles) and is a main route for Kazakh oil exports.

Shareholders in the CPC include U.S. majors Chevron and Exxon Mobil XOM.N as well as the Russian state, Russian firm Lukoil LKOH.MM, and Kazakh state company KazMunayGas.