UPDATE 1-Oil output at Kazakhstan's Tengiz field shrinks after an accident, sources say

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Adds energy ministry's statement in paragraphs 6-8

Output at Tengiz shrank to 5,000 to 10,000 metric tons a day, sources say

A source says output was at 82,000 tons on May 27

The cause of the accident is unknown

Tengiz was also affected by incidents in January

- Oil production at the Chevron CVX.N-led Tengiz field, Kazakhstan's largest, fell sharply on May 26 as a result of an accident, two industry sources told Reuters on Friday.

The first two sources said daily output at Tengiz, which had only just recovered from a previous incident, fell to between 5,000 metric tons and 10,000 tons on Tuesday, compared with the usual level of 125,000 tons or 995,000 barrels.

Speaking on condition of anonymity due to the sensitivity of the situation, the sources did not give any details of the accident or its cause, but said they expected oil production to be gradually restored within roughly a week.

A third source said output at the field, operated by Tengizchevroil, stood at around 82,000 metric tons on May 27.

Chevron in a statement on Friday said part of the Tengiz oilfield had experienced "minor operational disruption" on May 28 and that output was being restored. It did not give further details.

Kazakhstan's energy ministry said it was constantly monitoring the situation.

"On May 28, 2026, an operational disruption occurred at one of Tengizchevroil's production facilities, resulting in a temporary decline in oil output," the energy ministry's spokesperson said in a statement.

"No risks to personnel, the population, or the environment have been found," he said.

Kazakhstan produces 2% of the world's daily supply of crude oil. It is mainly exported via the Caspian Pipeline Consortium to Russia's port of Novorossiysk.

A prolonged outage would add to uncertainty on global oil markets, where prices last month hit highs well over $120 a barrel LCOc because of disruption caused by the Iran war and the closure of the Strait of Hormuz.

Production at the Tengiz field, located near the Caspian Sea in the far west of Kazakhstan, was only fully restored by April after output was halted in January following an issue involving power distribution.