OPEC Decision To Affect Positively Kazakhstan Oil And Gas Industry

OPEC Decision To Affect Positively Kazakhstan Oil And Gas IndustryThe decision of the Organization of Petroleum Exporting Countries (OPEC) on decrease in oil production at the level of 32.5-33 million barrels per day made at an informal meeting in Algeria within the XV International energy forum will positively affect development of oil and gas industry of Kazakhstan, deputy CEO of the Kazakh Institute of Oil and Gas Akbar Tukayev said.

According to the expert, the decision of OPEC on restriction of oil extraction will positively affect not only the republican budget but also the development of oil and gas industry of Kazakhstan.

“I believe that the scenario when by 2020 oil prices will be again 80-100 dollar per barrel has already been becoming real. It means that the Kashagan project within which volumes of production will be close to planned highest rates approximately by 2025 will give great financial promises for the country,” he added.

This year Kazakhstan plans to extract about 75 million tons of oil that is about 4 million less than in the previous years. If oil price exceeds the current level at least by 2-3 dollars, Kazakhstan will return to positive dynamics of oil extraction growth, Akbar Tukayev believes. However it is better for oil-producing countries to support the compromise which was reached by OPEC in Algeria for long-term stabilization of the world oil market.

“I think that Russia will also support the decision and will join the OPEC initiative. It is necessary to pay attention to the fact that the OPEC countries are focused first of all on themselves. If other countries join the decision, the extraction volume will not be catastrophically low. For example, it will mean non-exceedance of 80 million tons per year for Kazakhstan, which is normal level for us,” he said.

World oil prices have increased after the trades held on Thursday at the leading oil stock exchanges. The data were reported by the sites of London and New York crude stock exchanges.

The average price of oil futures made 49.24 (+0.55) /barrel at InterContinental Exchange (ICE).
The average oil price at New York Mercantile Exchange made $47.83 (+0.78) /barrel per contract on Light Sweet Crude Oil.