Kazakhstan to up oil output

/By AzerNews/

By Sara Rajabova

Kazakh official has said the country plans to increase the oil production in the coming years.

Uzakbay Karabalin, first Vice-minister of Kazakhstan said the country is expected to increase the oil production up to 86 million tons in 2017 and to 104 million tons in 2020, Kazakh media reported.

“It should be noted that in Kazakhstan, despite a decline in the rate of oil production in the reporting period, it is planned to increase oil production in the coming years. For example, in 2017 we expect to increase oil production up to 86 million tons in 2020 to 104 million tons,” Karabalin said.

He noted that this increase will be achieved thanks to "mainly the expansion [of production] at the Tengiz field and the resumption of offshore oil production at Kashagan field."

Karabalin recalled that in 2014, oil production in Kazakhstan amounted to 80.826 million tons. “In 2015, oil production is expected to reach 80.5 million tons, oil refining is projected at 14.3 million tons, as well as the export of oil is expected to reach 60 million tons,” he said.

Earlier, the country’s energy minister said Kazakhstan does not plan to decrease oil production in 2015, despite the fall of oil prices.

Kazakh government is grappling with economic difficulties due to the sharp fall in global oil prices and hard economic situation in Russia, its biggest trade partner. The dramatic fall in global oil prices complicated the economic situation in Kazakhstan, which is heavily dependent on oil revenues. Kazakh economy strongly hurt after the oil prices fall about 50 percent.

Since mid-2014, the oil prices drastically dropped from $100 per barrel to about $50 per barrel. Oil prices started to fall after supplies increased by certain countries such as Saudi Arabia, the largest producer in the Organization of the Petroleum Exporting Countries and a lackluster global economic growth.