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Kazakhstan cuts oil output in line with OPEC deal

07 January 2017 [13:29] - TODAY.AZ

By  Trend

Kazakhstan has started cutting its oil production to fulfill its commitments within the deal with OPEC and non- OPEC oil producers, Kuandik Kulmurzin, director of Kazakh Energy Ministry’s department of oil industry development told Astana TV channel.

Oil production has been reduced by 20,000 barrels of oil per day since Jan. 1, he said, but did not say at what fields the production was reduced.

Previously, the Kazakh energy ministry said that oil production would be reduced at some oil fields in Aktobe, Kyzylorda and Mangystau regions. Natural decrease in production is observed at these fields. Reduction will not affect such major projects as the North-Caspian project (Kashagan), Tengiz and Karachaganak, said the ministry’s message.

In December 2016 OPEC and non-OPEC producers reached their first deal since 2001 to curtail oil output jointly and ease a global glut after more than two years of low prices. Non-oil producers such as Azerbaijan, Bahrain, Brunei, Equatorial Guinea, Kazakhstan, Malaysia, Mexico, Oman, Russia, Sudan, and South Sudan agreed to reduce output by 558,000 bpd starting from Jan. 1, 2017 for six months, extendable for another six months, to take into account prevailing market conditions and prospects.

OPEC agreed to slash the output by 1.2 million barrels per day from Jan. 1, with top exporter Saudi Arabia cutting as much as 486,000 bpd.


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