OPEC says Kazakhstan’s oil supply to jump in 2014

Feb 17. AzerNews

By Aynur Jafarova

OPEC says Kazakhstan's oil supply to jump in 2014The Organization of Petroleum Exporting Countries (OPEC) has predicted that Kazakhstan’s oil supply will increase by 90,000 barrels per day (bpd) to average 1.73 million bpd in 2014.

In its February oil market report, OPEC said the forecasts show the highest level of the country’s oil production in 2014 will be observed in the fourth quarter-at 1.81 million bpd. In the first, second and third quarters of the year the production will amount to 1.69 million bpd, 1.68 million bpd, and 1.73 million bpd, respectively.

OPEC said Kazakhstan’s oil supply increased by 60,000 bpd to average 1.64 million bpd in 2013. The country produced its highest historical level of oil output at 1.69 million bpd in the fourth quarter of 2013. In 2013, on a quarterly basis, Kazakhstan’s supply came to an average of 1.68 million bpd, 1.60 million bpd, 1.61 million bpd, and 1.69 million bpd, respectively.

“Last year was meant to be the year of Kashagan, when the supergiant field in the northern Caspian Sea off Kazakhstan finally came on stream after nearly a decade of disappointments. But the 13 billion barrel development has endured yet another false start, and ended the year overshadowed by progress on Azerbaijan’s massive Shah Deniz field on the other side of the Caspian Sea. Technical problems have delayed the start of commercial production at Kashagan until spring this year,” the report said.

Kazakhstan’s Tengiz field expansion is expected to boost crude production to around 0.8 million bpd by 2019 from just less than 0.55 million bpd last year.

“Beyond Kashagan and Tengiz, Kazakhstan is also trying to drum up interest in plans to exploit ultra-deep oil resources both on and offshore in the vast northern Caspian region, which would involve drilling the world’s deepest-ever well,” OPEC said.

Kazakhstan, one of the five Central Asian countries, is rich with hydrocarbon reserves. The country’s production comes mainly from five onshore fields – Tengiz, Karachaganak, Aktobe, Mangistau, and Uzen – and two offshore fields – Kashagan and Kurmangazy, both located in the Caspian Sea.

The recoverable oil reserves of Kashagan field are estimated at 11 billion barrels, whereas total geological raw material reserves stand at 35 billion barrels. Besides, natural gas reserves are estimated at over 1 trillion cubic meters.

The Tengiz oil field is one of the deepest and largest oil fields in the world. Reserves of the deposit are estimated at 750 million to 1.1 billion tons (6-9 billion barrels) of recoverable oil.