BAKU, Azerbaijan, Jan.15
By Nargiz Sadikhova - Trend:
Kazakhstan’s oil supply is forecast to be 1.85 million barrels a day in 1Q2020 in line with voluntary commitments under the Declaration of Cooperation, Trend reports with reference to OPEC Monthly Oil market Report for January 2020.
However, total liquids supply for 2020 is forecast to grow by 0.02 million barrels a day to average 1.84 million barrels a day.
“Kazakhstan’s liquids output in November recovered by 0.04 million barrels a day month-on-month to average 1.88 million barrels a day, lower year-on-year by 0.03 million barrels a day. Crude oil production in November increased by 45,000 barrels a day to average 1.61 million barrels a day, however it was 24,000 barrels a day lower compared with a year ago,” the report said.
According to the Kazakh Energy Minister, oil production from the giant Kashagan field offshore Kazakhstan will have averaged 390,000-400,000 barrels a day in 2019 and plateau at around 500,000 barrels a day by 2027, the report said.
“Natural gas liquids (NGLs) output was flat at 0.27 million barrels a day, the same as a year ago. Kazakhstan’s oil supply in 2019 is not estimated to have grown year-on-year due to heavy maintenance in the Kashagan, Tengiz and Karachaganak fields throughout 2019, and is estimated to have remained unchanged at an average of 1.81 million barrels a day,” the report said.
At the end of 2018, OPEC and a number of non-affiliated countries (Kazakhstan being one of them) 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 has supported the decision to reduce oil extraction by additional 500,000 barrels a day within the framework of OPEC+ agreement under the decision made during the 7th OPEC and non-OPEC Ministerial Meeting held in Vienna, Austria, on Dec. 6, 2019.
Thus, current liabilities of Kazakhstan within the agreement are 1.843 million barrels a day compared to 1.86 million barrels a day previously.
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