BAKU, Azerbaijan, Jun. 22
By Nargiz Sadikhova - Trend:
Kazakhstan will take measures to decrease oil production within the framework of the OPEC+ agreement extension, Kazakhstan’s Ministry of Energy told Trend.
On Jun. 6, 2020, Kazakhstan has supported extension of the OPEC+ ministers’ decision to reduce oil production by 9.7 million barrels a day (by 23 percent compared to the average volume of Nov. 2018) till the end of Jul. 2020.
Kazakhstan's fulfillment of its obligations under the OPEC+ agreement amounted to 71 percent in May 2020. The total overproduction over first 12 days of May amounted to 3.13 million barrels and was associated with the inertia of the industry, the ministry said earlier this month.
The ministry said that the overproduction will be offset by an additional reduction in August and September.
“Kazakhstan is planning to completely fulfill its obligations under the agreement,” the ministry said
The ministry noted that just like initially, the oil production volumes will be reduced at Kazakhstan’s medium, large and gigantic oil fields in proportion to export volumes. The official also noted the oil productions forecasts for Jun. and Jul. 2020.
“Current forecast for oil and condensate production is 6.5 million tons and 6.7 million tons for June and July respectively,” the ministry 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.
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