Kazakhstan stresses OPEC+ compliance despite oil production boost

Kazakhstan is committed to adhering to its obligations under the OPEC+ agreement, despite a rise in oil production due to the launch of the Tengiz field expansion project, the country's Energy Ministry stated.

In a statement released on February 4, the ministry highlighted the importance of compliance with OPEC+ agreements, Caliber.Az reports, citing international media sources.

“While production is expected to increase this year with the start of the Tengiz field expansion, Kazakhstan remains focused on fulfilling its OPEC+ commitments and will engage in negotiations with its partners in accordance with international law,” the statement read.

Energy Minister Almasadam Satkaliyev had previously explained that Kazakhstan plans to meet its OPEC+ obligations by utilizing strategies such as limiting production at its own fields and directly negotiating with major consortium members to scale back output, aiming to achieve market balance.

Satkaliyev emphasized that Kazakhstan has “voluntarily done everything possible to fulfil its obligations to limit production” but set a production target of at least 96 million tons of oil for 2025. This forecast of 96.2 million tons for 2025 is made without considering OPEC+ obligations. The Ministry of Energy also clarified that the oil production forecast for 2025 will not be adjusted until the next OPEC+ meeting.

The Tengizchevroil LLP (TCO), the operator of the Tengiz field, announced the launch of production within the expansion project on January 24, 2025. The project is expected to boost Tengiz's total crude oil production by 12 million tons per year.

The Tengiz Future Expansion Project (TEP) and Wellhead Pressure Management Project (WPMP), initially slated for completion in late 2022, had their timelines postponed multiple times. These delays, along with planned and emergency shutdowns at the field, have impacted the country’s economic development.

Located in Kazakhstan’s Atyrau region, the Tengiz oil and gas field is one of the largest in the country, holding reserves of 3.1 billion tons. In the first half of 2024, the field produced 14.4 million tons (114.6 million barrels) of oil, marking a 3.4% decrease compared to the same period in 2023.

Tengizchevroil LLP’s stakeholders include Chevron (50%), ExxonMobil (25%), Kazakhstan's state-owned KazMunaiGas (20%), and LUKOIL (5%). The total estimated cost for the realization of the PBR-PUD project is $46.7 billion.

By Tamilla Hasanova