Kazakhstan Exceeds OPEC+ Quota

In March the oil output in Kazakhstan was 2.6% higher than the quota Kazakhstan has got under the OPEC+ deal aimed to cut off oil production. 

According to the Kazakhstani Ministry of Energy, March’s output was 1.475 million barrels per day while under the quota it should have been 1.437 million barrels. Over the period, Kazakhstan produced 7.3 million tons of oil and gas condensate in total. 

«In summer we are going to do some renovation work at several large projects. Therefore, the deviation from the deal’s obligations will be fully compensated. Kazakhstan won’t violate the OPEC+ deal and will eventually meet all the obligations,» the ministry said.

At the beginning of the year, the OPEC+ deal members decided to cut oil output by 7.125 million barrels in February and by 7.05 million both in March and April.

At the same time, the terms of this new deal are slightly different for Kazakhstan and Russia; both countries can gradually increase output by 10,000 and 65,000 barrels per day in March and April respectively. In other words,  oil production in Kazakhstan should have been about 1.427 million barrels a day in February and 1.437 million barrels in March. In January Kazakhstan’s quota was about 1.417 million barrels per day.

In April Kazakhstan and Russia can increase output by 20,000 and 130,000 barrels a day respectively. However, in comparison with the November 2018 level, Kazakhstan’s oil output in April still may be 15% lower.