BAKU, Azerbaijan, Feb. 12
By Nargiz Sadikhova - Trend:
Kazakhstan’s total liquids production is forecast to grow by 0.02 million barrels a day to average of 1.84 million barrels a day in 2020, Trend reports with reference to OPEC Monthly Oil market Report for February 2020.
“Kazakhstan’s liquids output in December recovered by 0.02 million barrels a day month-on-month to average 1.90 million barrels a day, higher year-on-year by 0.01 million barrels a day. Crude oil production in December increased by 17,000 barrels a day to average 1.63 million barrels a day, up by 13,000 barrels a day compared with a year ago. Natural gas liquids output was flat month-on-month at 0.27 million barrels a day, and the same as a year ago,” the report said.
OPEC said in the report that Kazakhstan’s oil production in 2019 is not estimated to have grown year-on-year due to heavy maintenance at the Kashagan, Tengiz and Karachaganak fields throughout the year and is expected to have remained broadly unchanged at an average of 1.82 million barrels a day.
For 2020, due to expected heavy maintenance at the main fields and no new projects forecast to come on stream, total liquids production is forecast to grow by 0.02 million barrels a day to average 1.84 million barrels a day, the report said.
“Kazakhstan’s oil production forecast for 1Q2020 was adjusted down to average 1.85 million barrels a day in line with voluntary commitments of the Declaration of Cooperation,” 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.
On Feb. 8, 2020 The Minister of Energy of Algeria and President of the OPEC Conference in 2020, Mohamed Arkab, has recommended extending voluntary production adjustments under the ‘Declaration of Cooperation’ process until the end of 2020 and to proceed with an additional adjustment until the end of the second quarter.
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