Kazakhstan Moves Beyond Its Obligations to Cut Oil Output

In June Kazakhstan has fulfilled its obligations to cut oil output under the agreement with OPEC+ by 105% according to Interfax-Kazakhstan, citing the country’s Ministry of Energy.

«According to preliminary data, the oil output in June reached 5.3 million tons or 1,297 million barrels per day without including condensates. Thus, the country fulfilled its obligations under the OPEC+ deal by 105% in the month of June,» the Ministry of Energy said in response to a news agency request.

In May Kazakhstan fulfilled its obligations only by 71% and promised to compensate for the lag in August and September. To reach this goal, the government has distributed quotas between oil fields for the second half of the year.

Under the OPEC+ deal, Kazakhstan was obliged to reduce oil output in May, June and July by 390,000 barrels a day. If the output is less than 390,000 barrels per day compared to the November 2018 output level (1,709 million barrels per day without including condensate), the current daily oil output in Kazakhstan might be about 1319 million barrel per day.