Nurlan Nogayev: Thanks to OPEC + agreement we did not have to stop production at the fields

The Minister of Energy said during the reporting meeting, the press service of ME RK reports.

According to Nurlan Nogayev participation in OPEC+ agreement is aimed at restoring the balance of supply and demand, restoring oil prices. In order to avoid the risk of overstocking of oil in oil storage facilities, the Ministry of Energy decided to limit production at medium-sized, large and giant fields. There was a fair distribution of obligations to reduce oil production for all types of fields.

-If we did not reduce oil production, this could lead to overstocking of oil storage facilities in the second quarter of 2020, to a shock stop of production at some fields. Thanks to participation in the transaction, all market players came to a controlled and smooth reduction of oil production. We carried out the reduction as painlessly as possible, avoiding a complete shutdown of production at some fields, - said Nogaev.

In May-June 2020, OPEC+ agreement member countries plan to reduce total oil production by 9.7 million barrels/day. Kazakhstan has committed to reduce production by 390 thousand barrels per day.

The average daily oil production (without condensate) in Kazakhstan on May 25 is 177.8 thousand tons of oil, which indicates the fulfillment of the obligations of OPEC+ deal.

Unofficial translation