An unexpected shutdown at the Mangystau Atomic Energy Complex (MAEC) has prompted Kazakhstan to scale back its oil production, leading to concerns over potential supply shortages. Kazakh Minister of Energy Almasadam Satkaliyev announced on August 15 that due to the halt at MAEC and concurrent repair operations across the country's oil fields, oil production is expected to decrease.
Minister Satkaliyev stated that the Ministry of Energy has adjusted its projections for end-of-year oil production volumes. The initial target of nearly 90.5 mn tons has been revised downward due to electricity restrictions caused by the MAEC shutdown. It is now estimated that Kazakhstan will face a deficit of 1.5-2 mn tons in oil production.
"Due to the restrictions on the electricity supply, daily oil production has decreased by nearly 12,000 tons. We assume the country will produce 89.4 mn tons of oil," Minister Satkaliyev remarked
Minister Satkaliyev acknowledged that these figures are still being refined as repair operations at various oil fields are ongoing. He cautioned against drawing any firm conclusions at this stage and stressed the importance of accurately assessing the impact of the repairs on production capabilities.
The situation has been exacerbated by a separate power outage in western Kazakhstan, resulting from an additional emergency shutdown at the MAEC. This outage has compelled the Mangystau Region Akimat (governor's office), to implement controlled blackouts lasting between three to five hours per week. These blackouts are part of an effort to manage the strain on the regional power grid while essential repairs are carried out at the MAEC.
The combination of the MAEC shutdown, ongoing field repairs, and electricity restrictions has raised concerns about the stability of Kazakhstan's oil production and subsequent implications for global oil markets. Industry experts are closely monitoring the situation for any potential impacts on oil prices and supply dynamics.
As Kazakhstan navigates these challenges, the focus remains on swiftly restoring operations at the MAEC and expediting repairs to resume normal oil production. The nation's energy authorities are working diligently to mitigate any potential disruptions and stabilize oil output to meet both domestic and international demands.
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