Baku, Azerbaijan, Dec. 28
By Rashid Shirinov – Trend:
Kazakhstan is likely to increase oil output in 2019 regardless of its involvement in the OPEC-led production cuts, Trend reports citing S&P Global Platts report.
“The country will try to maintain production, as pivotal newer fields offset declines at mature fields elsewhere,” said the analysis.
However, Kazakhstan, which has posted impressive output growth over the past few years thanks to ramping up production at its major Kashagan field, may see output growth slow because Kashagan's phase one is already close to plateauing at current production levels, said Platts.
“Analysts said Kazakhstan's output will be up 1 percent at best, with other large projects – Tengiz and Karachaganak – expected to see steady output until the big Tengiz expansion in 2022,” according to the analysis.
Under the latest OPEC+ agreement, Kazakhstan has agreed to cut output by 40,000 b/d from a reference figure of 1.9 million b/d, OPEC said. However, analysts see other factors as likely to hold more sway on output volumes in 2019.
"If output is adjusted anywhere it will not be because of the OPEC+ decisions, but more so likely due to individual field issues, lower oil prices, or other technical issues that would be conveniently parlayed in to adherence to a cut," said Barclays head of energy markets research, Michael Cohen.
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