Fitch Solutions publishes outlook for Kazakhstan’s oil sector
Baku, Azerbaijan, Feb. 20
By Rashid Shirinov – Trend:
Fitch Solutions Macro Research expects Kazakhstan’s annual average crude and condensate production to be at some 1.87 million barrels per day in 2019.
The outlook for Kazakhstan’s oil sector notes that the country will experience growth in oil production through 2019 and again in the early 2020s, supported predominantly by output from the Kashagan and Tengiz fields.
Fitch Solutions Macro Research also expects the giant Kashagan field to reach maximum capacity of around 370,000 barrels per day this year.
The report notes that a one-to-two month shutdown of the three major fields in Kazakhstan (Kashagan, Tengiz and Karachaganak) in the first half of 2019 will reduce the annual average production figures for the country. This will also help the country comply with a pledged cut of 40,000 barrels per day as part of the OPEC+ deal.
“From 2022, we expect that the second phase of the Tengiz field will boost output by an additional 260,000 barrels per day,” reads the outlook.
Fitch Solutions Macro Research added that a possible expansion project at the Kashagan field would add to the production profile into the middle of the 2020s.
“However, we caution that continued technological and operational challenges encountered in initial field development and significant cost over-runs in the project as a whole means at this stage notable additional capacity additions at the field remain hypothetical,” reads the report.
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