WORLD: American giant Chevron’s blow. Romania’s largest oil supplier increased its production to record levels

Kazakhstan’s oil output hit a record daily high of 278,499 metric tons on Sunday, just after U.S. oil giant Chevron announced the completion of work to boost output at the Asian country’s largest field, Tengiz. That’s roughly 2 percent of the world’s output.

Kazakhstan relies on Tengiz and two other major fields, Karachaganak and Kashagan, for most of its oil production. Sunday’s record output is equivalent to about 2 million barrels per day (bpd), or about 2 percent of global daily output, based on a barrels-per-ton ratio of 7.5. According to the Situational and Analytical Center for the Fuel and Energy Complex, production was 10.5% higher than the same day in 2024.

Chevron said Friday it had started production at the next phase of its giant Tengiz oil field, after completing a $48 billion investment that will bring its output to about 1% of global crude supply. Chevron has for several years held a 50% stake in the joint venture Tengizchevroil, where it is also the operator, with Exxon Mobil holding 25%, Kazakh oil firm KazMunayGas 20% and Russian oil producer Lukoil the remaining 5%. Tengizchevroil is expected to generate $4 billion in free cash flow in 2025 and $5 billion next year, at an average Brent price of $60 a barrel. Brent currently trades at about $80 a barrel.

Tengiz production is expected to reach full capacity of 260,000 bpd by June, bringing the project’s total output to around 1 million barrels of oil equivalent per day. Tengiz is one of the deepest and most complex fields in the world due to high sulfur levels and difficult weather conditions.

Kazakhstan plans to increase its oil and gas condensate production this year to 96.2 million tonnes, from 87.56 million tonnes in 2024. On the other hand, OPEC+ has designated Kazakhstan, one of the world’s top 10 oil producers, along with Iraq and Russia, as countries that have repeatedly failed to meet oil production cut commitments.

Kazakhstan provides the bulk of Romania’s crude imports, and through its national company KazMunayGas, also owns the Rompetrol group, which operates the country’s largest refinery, Petromidia.

The main and most profitable route for Kazakhstan’s oil exports remains the 1,500 km pipeline operated by the Caspian Pipeline Consortium (CPC), which runs from the Caspian fields and supplies the global market via a Russian terminal on the Black Sea in the Russian port of Novorossiysk, from where crude oil also reaches Romania. Deliveries via CPC fell by 1% last year, reaching 51.99 million tonnes, but still accounted for over 80% of Kazakhstan’s total oil exports.