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Kazakhstan’s Nostrum increases 2020 oil forecast despite COVID-19 concerns

Oil&Gas Materials 30 October 2020 16:59 (UTC +04:00)
Kazakhstan’s Nostrum increases 2020 oil forecast despite COVID-19 concerns

BAKU, Azerbaijan, Oct. 30

By Nargiz Sadikhova - Trend:

Kazakhstan’s Nostrum Oil & Gas PLC was producing 23,129 barrels of oil per day during 9M2020, Trend reports citing the company.

The company said that COVID-19 is of utmost concern.

“Actions were taken to protect the safety of all staff and contractors and mitigate any impact on operations. In particular, stringent testing and follow-up procedures are in place for all field personnel. To date, no production has been lost because of COVID 19,” the company said.

Thus, 9M 2020 average production after treatment was 23,129 barrels of oil per day with average sales volumes for the period of 22,269 barrels of oil per day.

“As previously reported, drilling has been halted for 2020. The successful workover and well intervention activity, completed in August 2020, has reduced the rate of decline previously expected in the field,” the company said.

The company noted that it is continuing to focus on monetizing spare capacity in the gas treatment facility through processing third party volumes. Over 9M2020 the Company has carried out an internal review of its reservoir and production data which indicates that its undeveloped reserves are subject to significant productivity risk.

Furthermore, the outlook for hydrocarbon product prices at which the Company sells its products, particularly gas, remains challenging. As of 30 September 2020, the Company had 46 wells in production (24 oil wells and 22 gas condensate wells).

The company's 2020 production forecast increased to 21,000 barrels of oil per day, corresponding to sales volumes of 20,000 barrels of oil per day.

Nostrum Oil & Gas is an oil and gas exploration company based in North-Western Kazakhstan, with substantial infrastructure assets and connections to major export destinations.

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Follow the author on Twitter: @nargiz_sadikh

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