According to the Kazakhstani Ministry of Energy, average daily oil production in July was 1.313 million barrels or 101% of the country’s obligations.
As part of OPEC+ deal, Kazakhstan was obliged to produce 1.319 million barrels per day in July.
In June Kazakhstan exceeded its obligations as well. That month the oil output without condensate was 5.3 million tons or 1.297 million barrels a day with a compliance rate of 105%. In May, the same indicator showed 71%.
Earlier in April, Kazakhstan has received new obligations under the OPEC+ agreement to cut oil production.
In general, the OPEC + deal is aimed at restoring the balance of supply and demand in order to buoy the oil prices. To avoid the risk of oil overstocking in storage facilities, the Kazakhstani Ministry of Energy has decided to limit production at medium, large and giant fields and guarantee a fair distribution of obligations for all types of oil fields.
By participating in the deal, all market players came to a controlled and smooth reduction in oil production.
According to the Ministry of Energy of Kazakhstan, in August-September of this year, production is planned at a level sufficient to compensate for the excess production in previous months.
According to the OPEC + agreement, which has been seeking to cut oil production by 9.7 million barrels per day in the May-June period, Kazakhstan committed itself to cut production by 390,000 barrels per day. On June 6, Kazakhstan agreed to extend the OPEC + agreement at the previous production levels for one month — until the end of July.
In terms of the OPEC + agreement, the initiative members should cut oil production from 9.7 million barrels per day to 7.7 million barrels per day from August until the end of this year.
In August, the OPEC + countries plan to start returning gradually to the previous rates of oil production.