Kazakhstan once again promises OPEC+ to offset oil overproduction
The Ministry of Energy of Kazakhstan has officially commented on breaching the oil production quota set under an agreement with OPEC+. The ministry said that Kazakhstan will gradually offset oil overproduction in the first half of the year by September 2025.
«Kazakhstan confirms its adherence to the OPEC+ Agreement and supports decisions made in conjunction with OPEC+ member states. After the 37th ministerial meeting of OPEC+, Kazakhstan prepared a detailed plan to gradually compensate for overproduction in the first half of the year by September 2025,» the ministry said in a statement.
The agency noted that the country «will do everything necessary to meet its obligations and offset the overproduction according to the prepared plan.»
«As soon as we have full data on overproduction in June 2024 from secondary sources, we will provide the OPEC+ Secretariat with an updated offset plan,» the Ministry of Energy added.
The context. In late 2023, the ministry announced that Kazakhstan voluntarily pledged to cut its oil output by an additional 82,000 barrels per day from January 1 to March 31, 2024. OPEC+ member states voluntarily cut their oil output to support the stability and balance of oil markets.
In February 2024, Kazakhstan reported that it produced more oil in January than it was supposed to under its voluntary pledge to OPEC+. At the time, the ministry said that the country would offset the overproduction by May.
In March, Kazakhstan extended its voluntary cut of oil production by 82,000 barrels per day for the second quarter. Even though Kazakhstan cut its oil output, it produced more than promised in May. Later, the Ministry of Energy said that Kazakhstan would fully meet its obligations to the Organization of Petroleum Exporting Countries (OPEC) and its partners (OPEC+) by June.
