OPEC Downs Forecast For Oil Output Growth In Kazakhstan
OPEC revised down its forecast for oil output level in Kazakhstan in 2017 in its monthly oil market report published Jan. 18.
“For 2017, in line with the OPEC-non-OPEC cooperation agreement, adjusted Kazakh oil supply is now seen growing by 0.13 million barrels per day to average 1.69 million barrels per day,” the report said.
In its monthly oil market report published in December 2016 OPEC expected oil output in Kazakhstan to rise by 0.21 million barrels per day to 1.77 million barrels per day.
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. 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. Non-oil producers agreed to reduce output by 558,000 bpd in total. Kazakhstan agreed to reduce oil production by 20,000 bpd from November 2016 level.
OPEC noted that November liquids output in Kazakhstan was higher by 50,000 barrels per day compared to October to average 1.70 million barrels per day– the same growth as a year ago.
In autumn 2016 Kazakhstan launched oil production at the Kashagan field. The cartel noted that Kashagan’s original ramp-up plan for 2016 was to reach 0.18 million barrels per day by the end of year. However, Kazakh average oil output in 4Q16, along with average output in the preceding quarters, shows that additional production from the new field of Kashagan has not so far exceeded a maximum of 0.11 million barrels per day.
According to OPEC, production ramp-up of the Kashagan field could lead to a maximum level of 0.27 million barrels per day by year end.
Kazakhstan’s proven oil reserves as of early 2016 stood at 30 billion barrels, according to the BP Statistical Review of World Energy.