BAKU, Azerbaijan, May 15
By Nargiz Sadikhova - Trend:
Kazakhstan is not planning on preserving oil wells within the framework of OPEC+ liabilities implementation, Director of Oil Industry Development Department of Kazakhstan’s Ministry of Energy Kuanysh Kudaibergenov said, Trend reports with reference to Atameken Business News.
Kudaibergenov said that decrease of daily oil output is planned only at major fields, the oil reserves of which are no less than 10 million tons.
“Oil-producing companies reacted to this decision with understanding. The restrictions that will be imposed on each field were agreed on, and an official letter was sent to these companies. All know how much they have to cut. The reduced volumes were not pre-contracted,” Kudaibergenov said.
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.
---
Follow the author on twitter: @nargiz_sadikh