BAKU, Azerbaijan, Sept. 14
By Nargiz Sadikhova - Trend:
Kazakhstan’s liquids output in three months of June, July and August was flat at 1.58 million barrels a day, a decline of 0.32 million barrels a day compared to 1Q2020, Trend reports with reference to OPEC’s Monthly Oil Market Report.
The report said that Kazakhstan’s preliminary liquids production in August shows a minor increase of 0.01 million barrels a day month-on-month to average 1.59 million barrels a day, lower by 0.19 million barrels a day year-on-year.
“The giant offshore Kashagan project, has been largely untouched by the COVID-19 pandemic, in stark contrast to the Chevron-operated Tengizchevroil (TCO) joint venture that has struggled to cope with an outbreak of the virus,” the report said.
The report said that North Caspian Operating Company (NCOC) produced around 354,000 barrels a day of crude in 1H2020, according to official data, while crude output at Tengiz field averaged out at around 625,000 barrels a day.
“Crude oil production in June and July declined to 1.30 million barrels a day and 1.32 million barrels a day, respectively. The preliminary crude production data for August stands at 1.32 million barrels a day, flat month-on-month. Kazakhstan’s liquids production in 2020 is expected to decline by 0.12 million barrels a day to average 1.70 million barrels a day,” the report said.
For 2021, production is forecast to decline by 0.02 million barrels a day, year-on-year to average 1.68 million barrels a day, the OPEC 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. In Jun. 2020 the agreement was extended on the same conditions.
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