Kazakhstan will start reducing oil production under the OPEC+ agreement

Within OPEC+ agreement providing for a collective reduction of oil production to 9.7 million barrels a day for two months, Kazakhstan has pledged to reduce production by 390 thousand barrels per day, reports the press service of ME RK.

Due to the presence of a significant proficit of oil reserves against reduced demand for oil in the world and in Kazakhstan, there is a risk of complete overstocking of oil storage facilities in the second quarter of this year and emergency shutdowns of Kazakhstan's fields. 

In this regard, the Ministry has developed a draft government decree "On the introduction of temporary restrictions for subsurface areas use for exploration and production operations and operations for the production of hydrocarbons" with a list of individual subsurface areas for which it is necessary to restrict oil production for May-June of this year.

The production restriction applies to fields that belong to the category of medium, large and giant fields.

The specified list of subsurfaces does not include small and small fields. for which a natural decline in production is expected due to economic factors.

This resolution provides for a non-discriminatory approach to all mining companies, taking into account the need of the domestic market of Kazakhstan for the necessary volumes of oil products, as well as a fair distribution of obligations to reduce oil production for both large projects and for old fields that are at the stage of natural production decline.

Unofficial translation