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Kazakhstan: No decision so far on extension of oil output cut

Kazakhstan Materials 4 May 2017 20:45 (UTC +04:00)

Baku, Azerbaijan, May 4

By Elena Kosolapova – Trend:

Kazakhstan has not decided on a possible extension of oil output cut yet, the country’s deputy energy minister, Magzum Mirzagaliyev, told LS business website.

“Kazakhstan has not committed to reduce production in the second half of the year so far, but we are studying this issue in details,” he said.

The deputy minister noted that in autumn 2016, Kazakhstan launched Kashagan and oil production at the field has not reached the planned level yet.

Meanwhile, Mirzagaliyev said, Kazakhstan has received an invitation to the OPEC summit which will take place in Vienna on May 24-25, and Kazakhstan will take part in it.

At the meeting in Vienna, OPEC and non-OPEC oil producers will discuss extension of the cut deal reached in late 2016.

“Most likely, Kazakhstan will take the decision on this issue at the last minute, perhaps even in Vienna, during the discussions,” he said.

Energy Minister Kanat Bozumbayev earlier said that Kazakhstan was not able to cut production anymore and could only increase it in the second half of the year.

In December 2016, OPEC and non-OPEC producers reached their first deal since 2001 to curtail oil output jointly and ease a global glut after more than two years of low prices.

Non-OPEC producers such as Azerbaijan, Bahrain, Brunei, Equatorial Guinea, Kazakhstan, Malaysia, Mexico, Oman, Russia, Sudan, and South Sudan agreed to reduce output by 558,000 bpd starting from Jan. 1, 2017 for six months, extendable for another six months, to take into account prevailing market conditions and prospects.

OPEC agreed to slash the output by 1.2 million barrels per day from Jan. 1, with top exporter Saudi Arabia cutting as much as 486,000 bpd.

Within the deal with OPEC and non-OPEC oil producers, Kazakhstan has committed to cut oil output by 20,000 barrels per day from the November 2016 level starting from Jan. 1, 2017.

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