NUR-SULTAN

Kazakhstan produced 28.1 million tonnes of oil and gas condensate in the first quarter of 2021, in compliance with the country’s obligations under the OPEC+ deal, the Energy Ministry said.

In April alone, output was 1.483 million barrels per day (bpd), up from 1.475 million bpd produced in March and up from the energy ministry’s forecast to produce 1.457 million bpd.

Output in April slightly exceeded Kazakhstan’s OPEC+ obligations, but the energy ministry said that deviation from commitments would be compensated for in the future, taking into account major repair works that are expected to be conducted on large oil projects in the summer.

The ministry said in April that maintenance works were planned on a major Tengiz oil field in August-September.

Works will result in a decline in oil production on the field by 50 percent. The overhaul will last for about a month and a half.

The Tengiz field is operated by the Tengizchevroil consortium, led by the U.S. oil group Chevron. It also includes U.S. ExxonMobil, Russia’s Lukoil and Kazakhstan’s state energy firm KazMunayGaz.

There are two other major oil and gas condensate fields in the country – Kashagan and Karachaganak.

The Kashagan operated by the North Caspian Operating Company, includes Eni, ExxonMobil , CNPC, Royal Dutch Shell, Total , Inpex and KazMunayGaz.

The Karachaganak gas condensate field in northwest Kazakhstan is jointly operated by Eni and Shell. Other shareholders in the project are KazMunayGaz, Chevron and Lukoil.

Kazakhstan is set to increase oil output gradually from May under a fresh deal, that was agreed last month at a ministerial meeting of the OPEC+, a group of the Organisation of the Petroleum Exporting Countries (OPEC) and allied producers, including Kazakhstan.

OPEC+ had been cutting output by a little more than 7 million bpd to support prices and reduce oversupply, but members of the group agreed to ease cuts gradually by 350,000 bpd in May, another 350,000 bpd in June and around 450,000 bpd in July.

Kazakhstan is expected to produce 1.463 million bpd in May, 1.469 million bpd in June and 1.475 million bpd in July.

In 2021, Kazakhstan expects to produce 86 million tonnes of oil, including 25.3 million tonnes on Tengiz and 14.5 million tonnes on Kashagan. Oil exports projected at 67.5 million tonnes.