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OPEC forecasts Kazakhstan’s oil production down in 2020

Oil&Gas Materials 16 April 2020 18:08 (UTC +04:00)
OPEC forecasts Kazakhstan’s oil production down in 2020

BAKU, Azerbaijan, Apr.16

By Nargiz Sadikhova - Trend:

Kazakhstan’s liquids output rose by 0.03 million barrels a day in March compared to February 2020 to average 1.92 million barrels a day, which is higher by 0.02 million barrels a day year-on-year, Trend reports with reference to OPEC April’s Monthly Oil Market Report.

The report said that while crude oil production increased by 27,000 barrels a day to average 1.65 million barrels a day (up by 13,000 barrels a day year-on-year), natural gas liquids (NGL) output remained flat month-on-month at 0.27 million barrels a day and flat year-on-year.

“Kazakhstan’s oil production in 2019 is not estimated to have grown year-on-year due to heavy maintenance, but for 2020, total liquids' production was revised down by 193,000 barrels a day and is now forecast to decline by 0.17 million barrels a day to average 1.65 million barrels a day,” the report said.

The report also noted that production costs in Kazakhstan are among the highest in the region, with some fields at more than $30 per barrel.

On the morning of March 9, 2020, Brent crude plunged 25 percent dropping to its lowest since February 2016 and recording the biggest one-day percentage declines since Jan. 17, 1991.

Trading volumes in the front-month hit record highs in the previous session after a three-year pact between Saudi Arabia and Russia and other major oil producers to limit supply fell apart on March 6, 2020.

The extraordinary meeting of OPEC+ ministers was held on Apr. 12, 2020, following which the agreement to reduce oil production by 9.7 million barrels a day was signed for the period of two months starting from May 1, 2020.

Kazakhstan, in its turn, has supported the consensus in the agreement having taken the liability to decrease oil production by 390,000 barrels a day.

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