Black Sea Drone Attacks on Tankers Surge War Insurance Premiums

On Tuesday, two oil tankers were struck by drones in the Black Sea, one of which was chartered by the U.S. oil giant Chevron. The vessels were making their way toward the Yuzhnaya Ozereyevka terminal, a crucial loading point that handles approximately 80% of Kazakh oil intended for international markets, along with some Russian crude, according to eight anonymous sources.

Chevron confirmed that all crew members were safe and that the vessel remained stable. The tanker is currently proceeding to a safe port while coordinating with the ship operator and relevant authorities.

This incident occurs against the backdrop of significant challenges faced by Kazakhstan’s oil output, which plummeted in early January. U.S. oil majors operating in the region have struggled to transport crude via Russia due to winter storms and damage to infrastructure from a previous Ukrainian drone attack.

Kyiv has been actively targeting Russian energy infrastructure in an effort to pressure Moscow to cease its military actions in Ukraine. However, it remains unclear who was responsible for the drone strikes on the tankers.

As of now, the Ukrainian government has not commented on the attacks. The Caspian Pipeline Consortium (CPC), which operates the terminal where the tankers were scheduled to load, also declined to provide any statements.

Kazakh Oil and Gas Output Down 35%

The Yuzhnaya Ozereyevka terminal was previously attacked on November 29, when a Ukrainian drone struck one of CPC’s three main moorings located near Novorossiysk. Recent reports indicate that oil and gas condensate output in Kazakhstan has decreased by 35% between January 1 and January 12 compared to December’s average. This decline is primarily attributed to export constraints via the terminal.

Kazakhstan’s energy ministry announced on Tuesday that CPC continues to export oil via one of its moorings.

Tanker Strikes Drive Up Insurance Costs

Following the attacks, war insurance costs for ships navigating the Black Sea nearly doubled, according to five industry sources. Russian terminals in the Black Sea are responsible for handling over 2% of global crude, and the waters are vital for grain shipments, shared by Bulgaria, Georgia, Romania, Turkey, Russia, and Ukraine.

One of the attacked tankers, the Delta Harmony, is managed by Greece’s Delta Tankers. It was expected to load Kazakh-produced oil from Tengizchevroil, a subsidiary of Chevron. Delta Tankers later confirmed that they are investigating a security incident involving the Delta Harmony, which was struck by a projectile at 0512 GMT while off the coast of Novorossiysk.

All crew members were reported safe, and a brief fire was extinguished with no signs of marine pollution. The vessel has since moved away from the area under its own power.

Delta Tankers also stated that another vessel under its management, the Delta Supreme, was not affected, countering earlier reports suggesting it had been hit. Additionally, the Matilda, chartered by a KazMunayGas subsidiary and managed by Greece’s Thenamaris, was also struck while awaiting to load Kazakh oil from Karachaganak.

Kazakhstan’s Energy Ministry confirmed on Tuesday evening that both Matilda and Delta Harmony were attacked by drones. A Thenamaris official reported that Matilda was hit by two drones while in ballast condition, approximately 30 miles off CPC’s moorings. Fortunately, there were no injuries, and the ship sustained only minor damage to its deck structures, which is fully repairable. The vessel is now sailing away from the area.

Reports indicate that a fire broke out on board Matilda but was quickly extinguished. Initially, a fourth vessel, the Freud, managed by Greece’s TMS, was thought to have been attacked, but TMS later denied that it had been hit.

(Reporting by Reuters in Moscow, Renee Maltezou and Yannis Souliotis in Athens, and Jonathan Saul in London; Editing by Louise Heavens, Jan Harvey, Guy Faulconbridge, and Joe Bavier)

On Tuesday, two oil tankers were struck by drones in the Black Sea, one of which was chartered by the U.S. oil giant Chevron. The vessels were making their way toward the Yuzhnaya Ozereyevka terminal, a crucial loading point that handles approximately 80% of Kazakh oil intended for international markets, along with some Russian crude, according to eight anonymous sources.

Chevron confirmed that all crew members were safe and that the vessel remained stable. The tanker is currently proceeding to a safe port while coordinating with the ship operator and relevant authorities.

This incident occurs against the backdrop of significant challenges faced by Kazakhstan’s oil output, which plummeted in early January. U.S. oil majors operating in the region have struggled to transport crude via Russia due to winter storms and damage to infrastructure from a previous Ukrainian drone attack.

Kyiv has been actively targeting Russian energy infrastructure in an effort to pressure Moscow to cease its military actions in Ukraine. However, it remains unclear who was responsible for the drone strikes on the tankers.

As of now, the Ukrainian government has not commented on the attacks. The Caspian Pipeline Consortium (CPC), which operates the terminal where the tankers were scheduled to load, also declined to provide any statements.

Kazakh Oil and Gas Output Down 35%

The Yuzhnaya Ozereyevka terminal was previously attacked on November 29, when a Ukrainian drone struck one of CPC’s three main moorings located near Novorossiysk. Recent reports indicate that oil and gas condensate output in Kazakhstan has decreased by 35% between January 1 and January 12 compared to December’s average. This decline is primarily attributed to export constraints via the terminal.

Kazakhstan’s energy ministry announced on Tuesday that CPC continues to export oil via one of its moorings.

Tanker Strikes Drive Up Insurance Costs

Following the attacks, war insurance costs for ships navigating the Black Sea nearly doubled, according to five industry sources. Russian terminals in the Black Sea are responsible for handling over 2% of global crude, and the waters are vital for grain shipments, shared by Bulgaria, Georgia, Romania, Turkey, Russia, and Ukraine.

One of the attacked tankers, the Delta Harmony, is managed by Greece’s Delta Tankers. It was expected to load Kazakh-produced oil from Tengizchevroil, a subsidiary of Chevron. Delta Tankers later confirmed that they are investigating a security incident involving the Delta Harmony, which was struck by a projectile at 0512 GMT while off the coast of Novorossiysk.

All crew members were reported safe, and a brief fire was extinguished with no signs of marine pollution. The vessel has since moved away from the area under its own power.

Delta Tankers also stated that another vessel under its management, the Delta Supreme, was not affected, countering earlier reports suggesting it had been hit. Additionally, the Matilda, chartered by a KazMunayGas subsidiary and managed by Greece’s Thenamaris, was also struck while awaiting to load Kazakh oil from Karachaganak.

Kazakhstan’s Energy Ministry confirmed on Tuesday evening that both Matilda and Delta Harmony were attacked by drones. A Thenamaris official reported that Matilda was hit by two drones while in ballast condition, approximately 30 miles off CPC’s moorings. Fortunately, there were no injuries, and the ship sustained only minor damage to its deck structures, which is fully repairable. The vessel is now sailing away from the area.

Reports indicate that a fire broke out on board Matilda but was quickly extinguished. Initially, a fourth vessel, the Freud, managed by Greece’s TMS, was thought to have been attacked, but TMS later denied that it had been hit.

(Reporting by Reuters in Moscow, Renee Maltezou and Yannis Souliotis in Athens, and Jonathan Saul in London; Editing by Louise Heavens, Jan Harvey, Guy Faulconbridge, and Joe Bavier)