Key Kazakh Field Cuts Oil Output After Drones Hit Russian Plant

Kazakhstan's Karachaganak oil and gas field reduced its crude oil output by over 25% starting on March 12, 2024, following a drone strike on a Russian processing plant. The affected plant, located in Russia's Orenburg region, is critical for processing gas produced at Karachaganak. The shutdown of this facility, which processes approximately 10 million cubic meters of gas daily, directly impacted Karachaganak's ability to export its crude oil. The Karachaganak field, operated by a consortium including Eni and Shell, is one of Kazakhstan's largest energy projects, producing around 12 million tons of oil and 15 billion cubic meters of gas annually. The incident highlights the vulnerability of energy infrastructure to geopolitical events and disruptions. The full extent of the production cut and the timeline for the resumption of normal operations at the Russian plant remain unclear, potentially impacting global energy supply chains.