Mar 21, 2025
Kazakhstan's daily oil production reached a record high in March.
Kazakhstan's oil production has hit an all-time high this month due to oilfield expansions, surpassing OPEC+ production limits, as indicated by two industry sources and calculations from Reuters on Friday.
The country has consistently exceeded its OPEC+ quotas in recent months and has pledged to lower output under pressure from OPEC+ leaders Saudi Arabia and Russia. However, it faces challenges in persuading U.S. oil giants like Chevron and Exxon Mobil to cut back on production from Kazakhstan's largest fields, especially after they invested billions of dollars to expand their operations.
Following difficult negotiations regarding OPEC+ compliance, the country's Energy Minister has resigned. Oil and gas condensate production in Kazakhstan reached 4.6 million metric tons between March 1-16, averaging 2.16 million barrels per day (bpd), according to the sources. This was an increase from an average of 2.12 million bpd in February.
Kazakhstan's OPEC+ quota does not limit condensate production, but the crude oil output is supposed to be capped at 1.468 million bpd. From March 1-16, Kazakhstan produced an average of 1.86 million bpd of crude, exceeding its OPEC+ quota by nearly 400,000 bpd, as per Reuters calculations based on the provided data.
Output also exceeded OPEC+ quotas in January and February, recording 1.767 million bpd and 1.57 million bpd, respectively, according to OPEC data released last week. The state has committed to offsetting this with additional cuts. On Thursday, OPEC+ announced a new schedule for seven member countries, including Russia, Kazakhstan, and Iraq, to implement further oil output reductions to compensate for exceeding agreed levels.
OPEC+ sources informed Reuters that the record output from Kazakhstan has frustrated some key members and influenced their decision this month to initiate plans to increase output starting in April. Kazakhstan's oil exports in March remain robust, with flows through its Caspian Pipeline Consortium (CPC) export route continuing smoothly. Exports via the CPC pipeline are projected at 1.7 million bpd for April, consistent with the initial March plan.
The country has consistently exceeded its OPEC+ quotas in recent months and has pledged to lower output under pressure from OPEC+ leaders Saudi Arabia and Russia. However, it faces challenges in persuading U.S. oil giants like Chevron and Exxon Mobil to cut back on production from Kazakhstan's largest fields, especially after they invested billions of dollars to expand their operations.
Following difficult negotiations regarding OPEC+ compliance, the country's Energy Minister has resigned. Oil and gas condensate production in Kazakhstan reached 4.6 million metric tons between March 1-16, averaging 2.16 million barrels per day (bpd), according to the sources. This was an increase from an average of 2.12 million bpd in February.
Kazakhstan's OPEC+ quota does not limit condensate production, but the crude oil output is supposed to be capped at 1.468 million bpd. From March 1-16, Kazakhstan produced an average of 1.86 million bpd of crude, exceeding its OPEC+ quota by nearly 400,000 bpd, as per Reuters calculations based on the provided data.
Output also exceeded OPEC+ quotas in January and February, recording 1.767 million bpd and 1.57 million bpd, respectively, according to OPEC data released last week. The state has committed to offsetting this with additional cuts. On Thursday, OPEC+ announced a new schedule for seven member countries, including Russia, Kazakhstan, and Iraq, to implement further oil output reductions to compensate for exceeding agreed levels.
OPEC+ sources informed Reuters that the record output from Kazakhstan has frustrated some key members and influenced their decision this month to initiate plans to increase output starting in April. Kazakhstan's oil exports in March remain robust, with flows through its Caspian Pipeline Consortium (CPC) export route continuing smoothly. Exports via the CPC pipeline are projected at 1.7 million bpd for April, consistent with the initial March plan.