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Kazakhstan Vows to Compensate for Exceeding OPEC+ Oil Production Quota

by Krystal

Kazakhstan surpassed its allocated oil production quota by 131,000 barrels per day (bpd) in March, citing weather conditions and heating season demands, according to the country’s Energy Ministry statement released on Sunday. The ministry assured that Kazakhstan, a non-OPEC producer, is committed to offsetting its overproduction in the upcoming months.

“In the first quarter, Kazakhstan exceeded its obligations, and we are determined to rectify this,” stated the Kazakh Energy Ministry.

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Following discussions at the latest OPEC+ panel meeting earlier this month, Kazakhstan pledged to submit a comprehensive compensation plan to the OPEC Secretariat by April 30, 2024. The country is among the non-OPEC participants voluntarily curbing oil production in the first half of the year.

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The Joint Ministerial Monitoring Committee (JMMC), responsible for overseeing oil market dynamics and production cuts within OPEC+, refrained from recommending any alterations to output policy in its recent meeting. However, it emphasized the necessity for improved compliance with the agreed-upon cuts.

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While the JMMC does not have decision-making authority, it commended Iraq and Kazakhstan for their repeated assurances to achieve full conformity with production cuts and compensate for any overproduction.

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The official statement from OPEC highlighted, “The panel welcomed the Republic of Iraq and the Republic of Kazakhstan’s pledge to achieve full conformity as well as compensate for overproduction.”

In November, Kazakhstan, alongside several other OPEC and non-OPEC producers, committed to additional voluntary cuts totaling 2.2 million bpd for the first quarter of 2024. These reductions, including the extension of Saudi Arabia’s extra production cut of 1 million bpd initiated in July 2023, were prolonged into the second quarter. The current production constraints are slated to remain effective until the end of June.

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