Kazakhstan will quickly adjust to OPEC+ quota

The Energy Ministry announced on Wednesday that Kazakhstan would quickly adjust its output to bring it back into line with the OPEC+ quota, after exceeding its limit in February.

OPEC had said that Kazakhstan contributed the most to a significant increase in crude production by OPEC+ for February. In February, Kazakhstan produced 1.767 millions barrels of crude oil per day. This is up from 1.570 in January. Its OPEC+ quota amounts to 1.468 millions bpd.

"The Republic of Kazakhstan took the necessary steps to compensate for the temporary rise in production. The volume will be adjusted to conform fully with the limits established in the near future," the statement said.

In a press release, Kazakhstan reiterated its full commitment to the agreement it has with OPEC+.

The current overshoot of quotas is due to the technological processes in the Future Growth Project on the Tengiz Field. The project, which is long-term in nature, is designed to ensure stable energy supplies and fulfill our medium-term obligations.

The U.S. oil giant Chevron is expanding production at Tengiz - the largest field in the country.

Kazakh Energy Ministry played down country's impact on global market. It said it accounted for only 1.5% of the world's oil production and around 3% in OPEC+.

"These indicators show that Kazakhstan has no critical impact on global supply and demand. However, despite this our country remains reliable and fulfills its obligations."

The statement stated that Kazakhstan would implement its future production plan "exclusively strictly in accordance with country's obligations under international law and taking the current market situation into consideration". Reporting by Maria Gordeeva, writing by Mark Trevelyan, editing by Elaine Hardcastle

(source: Reuters)