Kazakhstan’s crude oil and condensate production reached a record high in March, surpassing the country’s OPEC+ quota once again.
As a non-OPEC member of the OPEC+ agreement, Kazakhstan produced 2.17 million barrels per day (bpd) of crude oil and condensate in March, industry sources told Reuters. This marked an increase from 2.15 million bpd in February.
Crude oil production alone rose to 1.88 million bpd in March, up from 1.83 million bpd in February, according to the same sources.
Under the OPEC+ deal, Kazakhstan’s crude oil production quota is set at 1.468 million bpd. However, the agreement does not limit condensate production, which has allowed Kazakhstan to exceed its quota.
Kazakhstan has consistently produced above its OPEC+ limit and is one of the largest overproducers, alongside Iraq and Russia.
The situation has become more pronounced this year, following the start of production at a major expansion project by U.S. oil giant Chevron at Kazakhstan’s largest oilfield. The Future Growth Project (FGP) at the Tengiz field will boost crude output by 260,000 bpd. FGP is the third processing plant at Tengiz and is expected to increase total output to 1 million barrels of oil equivalent per day (boepd).
Despite the overproduction, Kazakhstan is facing difficulty in convincing Chevron and other major oil companies operating in the country to curb output. After years of significant investments in oilfield expansions, these companies are unlikely to reduce production voluntarily.
Kazakhstan’s crude oil exports via the Caspian Pipeline Consortium (CPC) remained strong in February and March. However, a potential disruption looms after Russia ordered the temporary shutdown of two of the three moorings at the main oil export terminal on the Black Sea, which handles Kazakhstan’s oil shipments.
Related Topics:
- OPEC+ Increases Output for the First Time Since 2022, Shaking Up Markets
- Oil Prices Drop 2% to 12-Week Low as OPEC+ Plans to Boost Output
- OPEC Fund and Indonesian AID Partner to Co-Finance and Develop Global Projects