Kazakhstan Required to Cut Output Over Past Quota Breaches - Reuters

Kazakhstan will have to cut oil production to make up for consistently exceeding its output quotas, Orda.kz reports, citing Reuters.

Along with Iraq and several others, the country has agreed to reduce output as part of an OPEC+ compensation plan aimed at offsetting overproduction in previous periods.

According to OPEC, Kazakhstan is required to cut 1.3 million barrels by June 2026. Iraq faces an even steeper target of 1.93 million barrels. Russia, Saudi Arabia, the UAE, Kuwait, and Oman have also made similar commitments. In May alone, the group plans to collectively reduce production by 378,000 barrels per day.

Under the previous plan, which expired in March, required cuts ranged from 189,000 to 435,000 barrels per day. The updated range now falls between 196,000 and 520,000 barrels daily.

OPEC says the new cuts are intended to help stabilize the market and offset anticipated increases in output from other producers starting in May. Algeria is notably exempt from the new reduction obligations.

Earlier this month, we reported that Kazakhstan reduced its oil output by 3% in early April compared to March.

However, that still wasn’t enough to meet its OPEC+ target. Reuters sources indicated that Saudi Arabia and other major producers had expressed frustration over quota noncompliance. The drop in output was linked to lower volumes at the Tengiz field, though officials did not specify which companies had scaled back.

Original Author: Ruslan Loginov