NUR-SULTAN

Kazakhstan produced 56.1 million tonnes of oil and gas condensate in the first eight months of 2021, slightly down from projected figures, the Energy Ministry said.

Most of Kazakhstan’s oil and condensate output comes from the Tengiz, Kashagan and Karachaganak oilfields.

The Tengiz field produced 17.1 million tonnes of oil in January-August. The field is operated by the Tengizchevroil, a consortium led by U.S. oil group Chevron. It also includes the U.S. Exxon Mobil, Russia’s LUKOIL and Kazakhstan’s state energy firm KazMunayGaz.

The Kashagan field produced 10.2 million tonnes of oil. It is operated by an international consortium led by the North Caspian Operating Company. Other partners include Eni, Exxon Mobil, CNPC, Royal Dutch Shell, Total, Inpex and KazMunayGaz.

Oil output at the Karachaganak field in northwest Kazakhstan was 7.8 million tonnes. The field is jointly operated by Eni and Shell. Other shareholders in the project are KazMunayGaz, Chevron and LUKOIL.

Oil exports amounted to 44 million tonnes in the first eight months of this year, the ministry said.

Production of oil products exceeded 8.3 million tonnes, 2 percent up from January-August last year.

Kazakhstan is set to increase oil production to 1.508 million barrels per day (bpd) in September under a fresh decision made by the OPEC+ grouping.

As the COVID-19 pandemic disrupted production as well as demand for oil, OPEC+, a group of the Organisation of the Petroleum Exporting Countries (OPEC) and allied producers of which Kazakhstan is a member, cut output by a little more than 7 million bpd to support prices and reduce oversupply. Other former Soviet oil-producing countries, Russia and Azerbaijan, are also OPEC+ members.

In April 2021, members of the group agreed to ease cuts gradually by 350,000 bpd in May, another 350,000 bpd in June and around 450,000 bpd in July.

In July, OPEC+ ministers decided to increase total production from August by 400,000 bpd every month and went further by deciding in August to increase production by another 400,000 bpd from October.

Kazakhstan, which has been advocating for increased production quotas, welcomed the decision to boost production levels. The resource-rich ex-Soviet country is now scheduled to produce 1.508 million bpd in September, up from 1.491 million bpd in August and will be adding a further 16,000 barrels every month.

In 2021, Kazakhstan expects to produce 86 million tonnes of oil, including 25.3 million tonnes on Tengiz and 14.5 million tonnes on Kashagan. Oil exports are projected at 67.5 million tonnes. In 2020, oil production in the country was 85.7 million tonnes.