Kazakhstan's Karachaganak daily oil output fell by 24% in Sept m/m, sources say

MOSCOW, Oct 2 (Reuters) - Production of oil at Kazakhstan's Karachaganak field fell to 200,000 barrels per day (bpd) in September from 264,300 bpd in August, coinciding with maintenance at Russia's Orenburg gas processing plant (GPP), two industry sources told Reuters and Reuters calculations showed.

Sources said Karachaganak's output of oil and gas condensate, a type of light oil, dropped 24% as Russia's Gazprom GAZP.MM carried out planned maintenance at its Orenburg gas processing facility from September 8 to 30. The plant processes raw gas delivered from Karachaganak, one of Kazakhstan's largest fields.

Oil and gas output at Karachaganak are closely linked, meaning the field is not able to produce much oil if its gas production is down. Apart from processing at Orenburg, Karachaganak gas is used for reinjection to maintain reservoir pressure as well as for power generation at local facilities.

Kazakhstan's Ministry of Energy, Gazprom and Karachaganak Petroleum Operating (KPO) did not immediately respond to Reuters requests for comment.

The decline in output does not affect Kazakhstan's official oil production figures, as output from Karachaganak is classified as gas condensate by some government agencies and is excluded from the country's OPEC+ commitments.

State company QazaqGaz and Gazprom, which owns the Orenburg processing facility, operate the KazRosGaz joint venture to supply gas from Karachaganak for processing at the Russian plant.

Raw gas is delivered to Orenburg under a sales agreement between KPO and KazRosGaz valid until January 27, 2038. The parties are continuing negotiations over an extension, the energy ministry said.

Kazakh authorities agreed with Karachaganak shareholders in 2024 to build a new gas processing plant at the field with annual capacity of up to 4 billion cubic metres, expected to start operations in 2028. However, the project has been suspended with the current consortium, and the government is seeking new investors, aiming to attract Kazakh companies.

Karachaganak is operated by the KPO international consortium, comprising Shell (29.25%), Eni (29.25%), Chevron (18%), Lukoil (13.5%) and KazMunayGas (10%).