Kazakhstan Hopes To Increase Hydrocarbons Production
Resource-rich Kazakhstan plans to increase its oil and gas condensate production up to 81 million tons in 2017.
The increase is mainly connected with the expansion of production at the Tengiz field, which is considered as one of the largest fields in the world, as well as the resumption of production at the Kashagan oil and gas field.
Oil extraction at Kashagan, a large oil and gas field located in the north of the Caspian Sea was launched in autumn 2016. The volume of production and export from the field has already exceeded 1 million crude oil and condensate. LS website reported that the figure of 1 million in export was reached on January 8, 2017. Currently, the production rate is estimated at 180,000 bpd.
Previously, the Kazakh Energy Ministry announced, in a surprise move, that the country has cut its oil production by 20,000 barrels per day since January 1, to fulfill its commitments within the output cut deal with OPEC and non-OPEC producers.
The pledge of the country to implement a modest output cut became a surprise move, as prior to that, Kazakh officials repeatedly stated that the cut was “not on the agenda” for Kazakhstan.
But, the Ministry added that “it is too early” to talk about oil production cuts in the second half of 2017.
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 January 1, 2017 for six months, extendable for another six months.
Meanwhile, the U.S. Energy Information Administration (EIA) predicts oil production growth in Kazakhstan up to 1.75 million barrels per day (bpd). Quarterly production in 2017 is expected to stand at 1.76, 1.75, 1.74 and 1.73 respectively.
Proven oil reserves of the country as of early 2016 amounted to 30 billion barrels, according to the BP Statistical Review of World Energy.