Baku, Azerbaijan, Sept.11
By Nargiz Sadikhova – Trend:
Oil production in Kazakhstan is expected to be lower by 0.07 million barrels per day in 2H2019 compared to 1H2019 because of seasonal maintenance in August and September in the Tengiz field, Trend reports with reference to OPEC’s Monthly Oil Market Report.
Thus, Kazakhstan’s liquids output in July was down by 0.01 million barrels per day month-on-month to average 1.89 million barrels per day, higher year-on-year by 0.05 million barrels per day. Crude oil output was flat at 1.62 million barrels per day, according to direct communication.
Oil output from Tengiz and the Karachaganak oil fields in July was reported at 0.6 million barrels per day and 0.24 million barrels per day, respectively.
Average crude oil output from the Kashagan field produced by the North Caspian Operating Consortium (NCOC) rose by 9,000 barrels per day month-on-month to average 354,000 barrels per day in July, higher by 0.07 million barrels per day year-on-year.
The NCOC plans to boost production in Kashagan through gas injection in order to ramp up production to as high as 470,000 barrels per day.
Oil supply in Kazakhstan is expected to decline by 0.06 million barrels per day to average 1.76 million barrels per day in 2019, revised up by 25,000 barrels per day, while it is forecast to grow by 0.09 million barrels per day year-on-year to average 1.85 million barrels per day in 2020, mainly as a result of the Kashagan ramp-up.
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.
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