Wedoany.com Report-May 9, Kazakhstan’s Energy Ministry, based in Astana, has announced that the country will maintain its oil production at an average of 277,000 metric tons of crude and condensate per day in May, consistent with April’s output and up from 260,000 metric tons in March. This decision comes despite Kazakhstan’s history of exceeding production limits set by the Organization of the Petroleum Exporting Countries and its allies (OPEC+).
Under the OPEC+ agreement, Kazakhstan is expected to produce just under 1.4 million barrels per day of crude in May. However, including condensate—a light oil not counted in OPEC+ quotas—the country’s total planned production is estimated at approximately 2 million barrels per day, based on Energy Ministry data and a conversion rate of 7.33 tons to barrels. Kazakhstan typically produces around 260,000 barrels per day of condensate.
The Energy Ministry stated on Tuesday that it is reviewing options to align with its OPEC+ commitments to reduce production but provided no further details. Kazakhstan has noted that foreign-operated projects within the country, such as the Tengiz oil field managed by Chevron Corp. and the Kashagan oil field operated by Italy’s Eni SpA, significantly influence its production levels. Chevron’s CEO, Mike Wirth, recently told analysts: “We have received no instructions from the government to rein in our massive Tengiz oil project.” Eni SpA has made similar remarks regarding Kashagan.
Kazakhstan, Central Asia’s largest oil producer, plays a significant role in global oil markets. The Tengiz and Kashagan fields have driven recent increases in the country’s output, contributing to its consistent production above OPEC+ limits. The Energy Ministry’s decision to maintain May’s production levels reflects the operational dynamics of these major projects, which are critical to Kazakhstan’s economy and its position as a key oil exporter.
The country’s approach to production underscores the complexities of balancing domestic output with international agreements. As Kazakhstan evaluates its compliance options, it aims to sustain its export capacity while addressing the expectations of OPEC+ partners. The steady production plan for May supports the nation’s energy sector, which drives economic growth and meets global demand for crude and condensate.
This development highlights Kazakhstan’s ongoing efforts to navigate its role within the global oil market. By maintaining stable production, the country ensures continuity in its oil exports, supporting industries and markets worldwide while exploring pathways to meet its OPEC+ obligations in a manner that aligns with its operational realities.
