Kazakhstan has become the European Union’s third largest source of oil
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Kazakhstan, Romania’s main oil supplier, has also entered the top 3 oil sources of the European Union in 2024, amid the European bloc’s efforts to move away from Russian fuel.
Kazakhstan was, last year, in 3rd place in terms of oil supply sources of the European Union, according to the Kazinform news agency citing Eurostat. Thus, in total, the EU imported 9.1 million barrels of oil per day (boe) last year. The first sources were the United States, with 1.4 million boe, Norway with 1.1 million boe and, very close, Kazakhstan, with 1.05 million boe.
Thus, the Central Asian country brought 11.5% of all imported oil of the European Union in 2024, as can be seen in the attached graph.
In 2024, the oil and gas industry in Kazakhstan turned 125 years old. During this period, the sector expanded from a handful of wells to a major industry, establishing Kazakhstan as a key geopolitical player, especially following the production-sharing agreements signed by the state with major global players – ExxonMobil, Chevron, Eni, BP, Lukoil, etc.
Kazakhstan exported approximately 87.56 million tonnes of crude oil and condensate in 2024, down from the initial target of over 90 million tonnes, due to maintenance work and OPEC+ commitments. The main export route was the CPC pipeline to the Russian port of Novorossiysk on the eastern Black Sea, which transported 55.4 million tonnes, accounting for approximately 80% of Kazakhstan’s total crude oil exports. Other routes included the Atyrau-Samara pipeline (8.6 million tonnes), Caspian Sea shipping (3.6 million tonnes), and the pipeline to China (1.1 million tonnes). Exports have been affected by geopolitical tensions in the region. In February 2024, a drone attack targeted the CPC Kropotkinskaia pumping station in Russia, reducing export capacity by about 30%. Also in March, Russia ordered the closure of two of the three berths at the CPC Black Sea terminal, citing unannounced inspections, significantly reducing Kazakhstan’s export capacity. For this reason, in order to reduce dependence on export routes through Russia, Kazakhstan has planned to increase crude oil exports via the Baku-Tbilisi-Ceyhan (BTC) pipeline, with the intention of increasing the volume from 1.5 million tons to up to 20 million tons annually.
Exports are certain to increase this year, as production will also increase as a result of new investments. At the end of January, Kazakhstan’s daily oil production reached a record daily level of 278,499 metric tons, or about 2 million barrels per day (bpd), or about 2% of global daily production. This came after US giant Chevron announced that it had started production at the next phase of its giant Tengiz oil field, following the completion of a $48 billion investment that will bring its output to about 1% of global crude supply. Earlier this year, Kazakh authorities said the country planned to increase its oil and gas condensate production this year to 96.2 million tons. This despite OPEC+ designating Kazakhstan, along with Iraq and Russia, as countries that have repeatedly failed to meet oil production reduction commitments. Kazakhstan responded by saying that it puts the country’s interests above OPEC+ commitments.
As the EU moves away from Russian oil, including amid a continental embargo – applied with some exceptions such as Hungary or Slovakia – the Kazakhs wanted to differentiate their product. Thus, they imposed the name “KEBCO” (Kazakh Export Blend Crude Oil), clearly showing that it is Kazakh crude oil even though it is transported to Western Europe through Russian pipelines.
In January-October 2024, Kazakhstan exported 1.2 million tons of crude oil to Germany via the Druzhba pipeline, which connects Russia with Europe, thus reaching the planned volume for the entire year. In November, the state-owned company KazMunayGas announced the possibility of increasing exports to Germany to 1.3 million tons by the end of the year. However, Germany has expressed interest in doubling imports of Kazakh oil, aiming for an annual volume of 2.5 million tons. In this context, two contracts were signed that ensure the monthly delivery of 100,000 tons of crude oil until the end of 2025, as well as a second contract for additional deliveries of up to 50,000 tons per month. In addition to Germany, Kazakh crude oil was also exported to Italy, the Netherlands, Romania, France and Greece.
Also, following a memorandum signed with the Croatian pipeline operator Janaf, Kazakh crude oil would be landed on the Adriatic coast to reach Croatia and, potentially, Hungary and Serbia, provided that the transport infrastructure allows this.
Kazakhstan is also Romania’s main source of crude oil imports, given that KazMunayGas (KMG), owns the Rompetrol Group, with two refineries in Romania, Petromidia (the largest in the country), and Vega. Also, due to the embargo that Romania respects, other companies that have refineries in Romania, Petrom and Lukoil, also import crude oil from Kazakhstan.
