Apr 9, 2025
Kazakhstan continues to significantly surpass the Opec+ target.
Kazakhstan does not anticipate a significant decrease in crude production in April following a substantial overshoot of its Opec+ target in March.
According to Deputy Energy Minister Alibek Zhamauov, Kazakhstan's crude output increased by 43,000 b/d, reaching a record 1.79 million b/d in March, which is 322,000 b/d above its Opec+ target of 1.468 million b/d. He mentioned that discussions with international oil companies managing the country's largest fields regarding a reduction in output have not yet reached an agreement.
The increase in Kazakh production has been driven by a significant output rise at the Chevron-operated Tengiz field in January, as part of the field's Future Growth Project (FGP). Zhamauov noted that no agreement has been reached to lower Tengiz output, describing it as a challenging task, particularly for Chevron, which has invested $50 billion into the FGP project and stated that reducing output is not feasible for them.
In March, Tengiz production reached 901,000 b/d, up from previous levels of 600,000-660,000 b/d. Kazakhstan's second-largest oil field, Kashagan, which is also run by international firms, produced 387,000 b/d in March. He indicated that neither of these fields is expected to cut back on production in April.
Zhamauov mentioned that Kazakhstan plans to reduce output from smaller fields operated by domestic producers like the state-controlled Kazmunaigaz. However, any reductions from these smaller fields will not be sufficient to counterbalance the increase from Tengiz.
Despite consistently promising to compensate for exceeding its target since January 2024, Kazakhstan remains among the largest overproducers within the Opec+ alliance. This situation has caused frustration among other Opec+ members, who have largely adhered to their production targets.
Kazakhstan's compensation plan indicates that the production for March should have been 1.43 million b/d.
The ongoing overproduction by Kazakhstan is believed to have influenced Opec+ members' decision to begin increasing output starting in May.
Zhamauov stated that Kazakhstan's crude production and exports have not been affected by the recent closure of two single-point moorings (SPMs) at the Caspian Pipeline Consortium (CPC) terminal located on Russia's Black Sea coast, which occurred late last month.
In March, Kazakhstan's crude exports were at 1.41 million b/d, an increase from 1.39 million b/d in February, while refinery throughput was 370,000 b/d, up by 22,000 b/d. Condensate production reached 290,000 b/d, up from 278,000 b/d in February. This brings Kazakhstan's total liquid production for March to 2.08 million b/d.
According to Deputy Energy Minister Alibek Zhamauov, Kazakhstan's crude output increased by 43,000 b/d, reaching a record 1.79 million b/d in March, which is 322,000 b/d above its Opec+ target of 1.468 million b/d. He mentioned that discussions with international oil companies managing the country's largest fields regarding a reduction in output have not yet reached an agreement.
The increase in Kazakh production has been driven by a significant output rise at the Chevron-operated Tengiz field in January, as part of the field's Future Growth Project (FGP). Zhamauov noted that no agreement has been reached to lower Tengiz output, describing it as a challenging task, particularly for Chevron, which has invested $50 billion into the FGP project and stated that reducing output is not feasible for them.
In March, Tengiz production reached 901,000 b/d, up from previous levels of 600,000-660,000 b/d. Kazakhstan's second-largest oil field, Kashagan, which is also run by international firms, produced 387,000 b/d in March. He indicated that neither of these fields is expected to cut back on production in April.
Zhamauov mentioned that Kazakhstan plans to reduce output from smaller fields operated by domestic producers like the state-controlled Kazmunaigaz. However, any reductions from these smaller fields will not be sufficient to counterbalance the increase from Tengiz.
Despite consistently promising to compensate for exceeding its target since January 2024, Kazakhstan remains among the largest overproducers within the Opec+ alliance. This situation has caused frustration among other Opec+ members, who have largely adhered to their production targets.
Kazakhstan's compensation plan indicates that the production for March should have been 1.43 million b/d.
The ongoing overproduction by Kazakhstan is believed to have influenced Opec+ members' decision to begin increasing output starting in May.
Zhamauov stated that Kazakhstan's crude production and exports have not been affected by the recent closure of two single-point moorings (SPMs) at the Caspian Pipeline Consortium (CPC) terminal located on Russia's Black Sea coast, which occurred late last month.
In March, Kazakhstan's crude exports were at 1.41 million b/d, an increase from 1.39 million b/d in February, while refinery throughput was 370,000 b/d, up by 22,000 b/d. Condensate production reached 290,000 b/d, up from 278,000 b/d in February. This brings Kazakhstan's total liquid production for March to 2.08 million b/d.