Kazakhstan Expected to Reach Record Oil Export Levels in July Amid OPEC+ Production Discussions — Bloomberg

Kazakhstan is expected to reach record oil export figures in July, according to Bloomberg, reports Orda.kz.

Reports indicate that crude oil exports via the Caspian Pipeline Consortium terminal in Novorossiysk may reach between 1.65 million and 1.75 million barrels per day. This could surpass the previous record of 1.7 million barrels per day set in February.

According to Bloomberg, Kazakhstan’s increased production has drawn attention from members of the OPEC+ alliance, which includes the Organization of the Petroleum Exporting Countries and its partners. The media outlet reports that the rise in output has led to ongoing discussions with the group, particularly in light of agreed-upon production quotas.

Bloomberg also writes that Kazakhstan's production hike has created friction with OPEC and its allies. 

To pressure Astana and other countries that exceed production quotas, the organization has been increasing supplies for months. Meanwhile, according to the outlet, Energy Minister Yerlan Akkenzhenov said last month that it was impossible to force production cuts on international partners.

In April, Kazakhstan produced 1.82 million barrels of oil per day, approximately 300,000 barrels above its OPEC+ quota. While production data for May has not yet been published, available information suggests output also exceeded the agreed level last month.

According to the Ministry of Energy, oil production is expected to continue growing. The country is projected to exceed its annual target of 97 million tons in 2024, with plans to increase output to 100 million tons in 2025 and 105 million tons in subsequent years.

Exports previously rose sharply in February, largely due to the expansion of the Tengiz field. Further increases are anticipated as output rises at Kashagan.

Despite the projected record for July, some ambiguity remains regarding export data. Reporting discrepancies have raised questions about the transparency of Kazakh oil sales abroad.

Original Author: Nikita Drobny