Kazakhstan seeks to up oil output
Baku, Azerbaijan, Feb. 23
By Nigar Guliyeva- Trend:
Kazakhstan plans to produce 87 million tons of oil in 2018, Kazakh Energy Minister Kanat Bozumbayev said at an expanded meeting of the ministry on Feb.23.
"The production plan for 2018 for now is at the level of 87 million tons. The main increase in oil output in 2017 was linked with growth at the Kashagan field, which hit 8.2 million tons. Also due to growth in Tengiz and Krachaganak, "said Bozumbayev.
The oil production in Kazakhstan in 2017 amounted to a record 86.2 million tons compared to 78 million tons a year earlier. The minister added that in 2018 the main increase is expected thanks to the Kashangan field.
"The production plan for Kashagan is about 11 million tons. Furthermore, production is expected to decline at the Kyzylorda and Aktobe fields, which is associated with late development and natural depletion of these fields, "Bozumbayev said.
Geological reserves of "Kashagan" are officially estimated at the level of 4.8 million tons of oil. Total oil reserves amount to 38 billion barrels, of which about 10 billion barrels are recoverable. Natural gas reserves are forecast at the level of more than 1 trillion cubic meters.
The minister further named key events in the oil and gas sector of Kazakhstan in 2017. "One of the key events of 2017 was the completion of the project to expand the capacity of the Caspian Pipeline Consortium pipeline system up to 52 million tons in the Kazakhstan section. In 2017, the CPC pipeline transported 49.6 million tons. In general, the country's technical capabilities in oil exports today amount to about 100 million tons," Bozumbayev said.
He noted that last year the volume of oil exports amounted to 96.8 million tons, which shows 12.4 percent growth compared to 2016.
As for expectations of oil prices for 2018, he said that the average price for Brent crude in 2016 was $45 a barrel, and in 2017 - $54 a barrel. The forecast for 2018 is about $55$-60 per barrel, Bozumbaev said.