Saudi Arabia And Kazakhstan Discussing Extension Of OPEC Deal Until Q1 2018

Kazakhstan plans to discuss extension of its oil liabilities in OPEC+ deal

Saudi Arabia is negotiating with Kazakhstan possible extension of OPEC deal on oil production cut until the end of first quarter 2018, said Kanat Bozumbayev, Minister of Energy of Kazakhstan.

“Minister of Energy of Saudi Arabia Mr Al-Faleh last year visited us. At the meeting with the Prime Minister (Bakytzhan Sagintayev-KazTAG) he asked Kazakhstan to join the extension of production freezing by at least six months, but may be nine. I.e. until the end of the year plus the first quarter next year,” he said.

“Concerning extension of the deal it is important for Saudi Arabia and the Russian Federation to join it, they are the biggest states which produce more than 11 barrels per day. For instance: Kazakhstan as I said produces 1.7 mln barrels, but these two states more than 11 mln barrels,” he said.

In his words Kazakhstan “wants to be in trend with all the oil producing states,” he added.

“It is important for us that the price did not fall below $50 (per barrel -KazTAG). The budget has been developed on the base of Brent $50, thus we will be negotiating possibility of the extension,” he said.

“Technically it will be difficult to keep the level as Kashagan field which we launched last year will factually reach high production volume this year. It is a unique field, one of the biggest in the world discovered in the past 50 years. Today 140-150 thousand barrels are produced there and we think it will grow to about 200 000 barrels in the second quarter. By the end of the year may be 300 000 barrels (per day – KazTAG). We will discuss it with our colleagues,” he said.