Finance
Kazakhstan to divert some Kashagan oil to China after Ukraine hit
Published by Global Banking and Finance Review
Posted on December 10, 2025
3 min readLast updated: January 20, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on December 10, 2025
3 min readLast updated: January 20, 2026
Kazakhstan redirects Kashagan oil to China following a Ukrainian attack on the CPC terminal, impacting global crude supply.
ASTANA, Dec 10 (Reuters) - Kazakhstan said on Wednesday it would redirect some oil from its Kashagan field to China and other routes after a Ukrainian drone attack last month on the Caspian Pipeline Consortium's Black Sea terminal in Russia.
The decision was announced by the energy ministry after Reuters reported earlier this week that Kazakhstan plans to supply crude to China directly from Kashagan for the first time after the Ukrainian attack damaged the CPC terminal.
The CPC, which accounts for 1% of global crude supply and includes Russian, Kazakh and U.S. shareholders, has had to reduce exports because a key part of its loading infrastructure - a single-point mooring (SPM) - was damaged in the attack.
CPC also accounts for around 80% of Kazakh oil exports.
Kazakhstan's oil pipeline operator Kaztransoil separately said on Wednesday that the country will ship 72,000 metric tons, or 17,400 barrels per day, of oil to China.
It will also raise supplies to the Atyrau-Samara pipeline to Russia by 232,000 tons and to the Baku-Tbilisi-Ceyhan pipeline by 58,000 tons this month compared to an initial plan.
"Additionally, throughout December 2025, Kaztransoil will provide oil-producing companies with the option of temporary crude storage in its tank farm facilities," it said.
Ukraine has stepped up attacks on Russian energy infrastructure since August in an effort to hurt funding for Russia's army, but its decision to strike CPC facilities has been condemned by Kazakhstan and the Kremlin given its global significance and international participation.
Most oil from Kashagan is usually exported via the CPC to the terminal at Novorossiysk for onward shipment.
The Kazakh energy ministry said the Ukrainian attack had not led to a complete export halt.
"The Ministry, together with shippers, is carrying out urgent work to redistribute oil volumes," it said, adding: "Measures have also been taken to redirect a certain volume of Kashagan oil to China".
Oil is produced at Kashagan by the NCOC consortium, which includes China's CNPC and Japan's Inpex.
The Atasu-Alashankou pipeline, which is due to take the oil from Kashagan, runs from Kazakhstan to the Xinjiang region of China but usually carries it from other fields in Kazakhstan.
Russia's largest oil producer Rosneft, which is under U.S. sanctions, supplies around 10 million tons of oil, or 200,000 barrels per day, via the route.
The offshore Kashagan field, one of the biggest discoveries in recent decades, is being developed by Eni, Shell, TotalEnergies, ExxonMobil, KazMunayGaz, Inpex and CNPC.
(Reporting by Tamara Vaal, writing by Vladimir Soldatkin; Editing by Andrew Osborn, Alexandra Hudson and Alexander Smith)
The Caspian Pipeline Consortium (CPC) is a major oil pipeline system that transports crude oil from Kazakhstan to the Black Sea, involving shareholders from Russia, Kazakhstan, and the U.S.
The Kashagan oil field is one of the largest oil fields in the world, located in the Caspian Sea, and is a significant source of crude oil for Kazakhstan.
Oil exports are the sale and shipment of crude oil from one country to another, which can significantly impact a country's economy and trade balance.
A single-point mooring (SPM) is a buoy anchored to the seabed that allows tankers to load and unload oil at sea, facilitating offshore oil transport.
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