Oil extraction to decrease in Kazakhstan
Baku, Azerbaijan, August 16
By Nargiz Sadikhova - Trend:
The oil supply is expected to decline by 0.08 million barrels a day to average 1.73 million barrels a day, whereas in 2020 it is forecast to grow by 0.09 million barrels a day year on year to average 1.82 million barrels a day mainly as a result of the Kashagan ramp-up, Trend report with reference to OPEC Monthly Oil Market Report for August 2019.
“Kazakhstan’s liquids output in June was up by 0.26 million barrels a day month-on-month to average 1.90 million barrels a day, higher year-on-year by 0.07 million barrels a day, as maintenance ended at Kashagan,” the report said.
In accordance to the report, oil production in 2Q2019 was lower by 0.13 million barrels a day year-on-year and even 1H2019 was lower than 1H2018 by 0.04 million barrels a day because of the production shut down in the Kashagan field during extensive maintenance from April 14 to May 19.
“Crude oil production rose by 253,000 barrels a day in June month-on-month to average 1.63 million barrels a day. Crude output at the Kashagan field already reached 400,000 barrels a day in early June, according to secondary sources,” the report read.
Furthermore, the North Caspian Operating Consortium plans to boost production in Kashagan through gas injection in order to ramp up production as high as 470,000 barrels a day, the report said.
“Oil production rose in July, but production is planned to shut down in the Tengiz and Karachaganak fields for planned maintenance in August,” the statement concluded.
At the end of 2018, OPEC and a number of non-affiliated countries (OPEC+) decided to extend the agreement on reducing oil production, which has been in force since the beginning of 2017. The countries agreed to reduce their production by a total of 1.2 million barrels per day from the level of October 2018.
A decision was passed in Vienna on July 2, 2019, regarding the extension of the agreement on the reduction of oil production by the countries of OPEC and non-members of the cartel until the end of the first quarter of 2020.
Kazakhstan’s responsibility within the agreement is to keep the extraction at the level of 1.86 million barrels a day.
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