Kazakhstan Faces Largest Output Cuts Under New OPEC+ Compensation Plan

The Organization of Petroleum Exporting Countries has published a new compensation schedule for states required to reduce oil production under OPEC+ quotas, Orda.kz reports.

According to Reuters, restrictions will apply to six countries that have not fully complied with OPEC+ targets: Kazakhstan, Iraq, Kuwait, the UAE, Russia, and Oman. The total compensation volume through June 2026 is set at 4.779 million barrels per day, with Kazakhstan responsible for the largest share.

Astana is expected to reduce output by 2.63 million barrels per day, or about 55% of the overall adjustment. The schedule foresees relatively modest cuts until the end of 2025, ranging from 10,000 barrels per day in September to 35,000 in December. 

Beginning in January 2026, however, reductions will rise more sharply, reaching 650,000 barrels per day by June.

Reuters noted that member states together will need to cut monthly production by between 190,000 and 829,000 barrels per day to remain within quotas.

Earlier, OPEC+ members, including Kazakhstan, had agreed to raise production by 547,000 barrels per day starting in September. While some experts have suggested that Kazakhstan should consider leaving the cartel, authorities have said the matter is not under discussion.

Original Author: Nikita Drobny