Kazakhstan to keep oil production rates within OPEC+ deal
"We now produce 1 million 800 thousand barrels per day. We are not going to reduce the output. Such an average daily production rate will remain until yearend. Our initial commitment within OPEC was 20,000 barrels of the level of November 2016, and this meant to be 1 million 680 thousand barrels per day. However, when we signed it, we made reservations that if this affects the interests of Kazakhstan's long-term investors, then it is factored out, I mean Kashagan," Kazakh Minister of Energy Kanat Bozumbayev explained on the sidelines of the Government session on Tuesday.
The minister mentioned that it was in November 2016, when production started at the Kashagan field. Therefore, it is understood that it is impossible to immediately impose output restriction on such a giant oilfield. In this regard, there are no heavy claims against Kazakhstan.
Earlier media reported that OPEC+ group announced their intention to increase oil production starting July.
This decision, according to Bozumbayev, is attributed to the fact that some countries had a strong decline in oil production. "By the end of the year, this may result in the situation when the traders' crude oil stocks will be insufficient to ensure continuous supply to the world's refineries for refining. Therefore, after a profound analysis by the OPEC and non-OPEC countries, it was decided to return to a 100 percent implementation of the agreement, that is, to raise production to 1 million BPD and make the overall decline to 1.8 million BPD. This will provide the needed market balance by the end of 2018," Kanat Bozumbayev clarified.