Kazakhstan to reduce oil production from the middle of March
According to the Minister for Energy, the drop in production will help Kazakhstan meet its quota in March as part of the OPEC+ agreement to reduce production levels.
TASS reported that during a speech given at the CERAWeek sector conference in Houston, Minister for Energy, Kanat Bozumbayev said that Kazakhstan, which is a party to the OPEC+ agreement, planned to cut production from the middle of March by 200 thous. bbl per day in connection with repair work at the Kashagan and Karachaganak fields.
In January 2019, Kazakhstan produced 8 mln. tonnes of oil or an average of 258.3 thous. tonnes/day or 1.885 mln. bbl/day.
In February, according to preliminary data, oil production in Kazakhstan amounted to 7.23 mln.tonnes, which translates as a daily average of approximately 259.3 thous. tonnes or 1.893 mln. bbl.
Total production for the 2 months of 2019 amounted to approximately 15.2 mln. tonnes or a daily average of 257.6 thous. tonnes or 1.880 bbl.
Given that Kazakhstan’s commitment to OPEC+ is ~1.860 mln. bbl/day, the deviation is only 20 thous. bbl/day, proving that Kazakhstan is on track to meet its commitments.
Note: On 7 December 2018, Vienna hosted the 5 th OPEC+ meeting, at which a decision was taken to reduce OPEC+ production by 1.2 mln. bbl/day from the October 2018 level (800.0 thous. bbl/day for OPEC countries, by 400 thous. bbl/day for non-OPEC countries).
Kazakhstan subscribed to the resolution, at the same time committing to reduce production from the November 2018 level. This leaves Kazakhstan’s commitment at ~1.86 mln. bbl/day or ~40 thous. bbl/day lower than production in November 2018, which helps us stick to our commitment to OPEC+.
According to the Ministry of the National Economy Statistics Committee, crude oil, natural gas and metal ore production in January-February 2019 grew year-on-year.