Sources say that a top Kazakh oilfield has reached a record production amid tensions between OPEC+ and the country.
Sources say that Tengiz, Kazakhstan's largest oil field, operated by U.S. giant Chevron, increased output to a new record in October. This could complicate the future efforts of Kazakhstan to meet its OPEC+ quota.
OPEC+ named Kazakhstan, Iraq, and Russia among the top 10 oil producers in the world as having repeatedly failed to meet its commitments to reduce oil production for this year.
Two industry sources said that Tengiz increased its daily production from 687,000 to 699,000 BPD in early October. The output had risen by 30% since August, after maintenance was completed.
Tengizchevroil - the operator of the field - said that its operations are continuing as normal and declined to comment further.
Chevron holds a 50% stake. Exxon Mobil owns 25% of the venture, KazMunayGaz holds 20%, and Lukoil, a Russian company, has 5%.
The Kazakh Energy Ministry did not respond to a question about the oil production plans in 2024 and 2025.
Kazakhstan, which depends on Tengiz, and two other large fields, Karachaganak, and Kashagan for the majority of its production, is subjected to output targets because it's a member OPEC+. This alliance of OPEC, other top producers, led by Russia, has set out specific output goals.
Calculations show that the country's oil output quota, under the OPEC+ agreement, is 1.468 millions bpd. It exceeded this target in September by about 170,000 bpd.
Sources said that it is likely to meet its target this month, as the Kashagan field will be shut down for maintenance.
The overall production figures for October are not yet available. However, sources say that Karachaganak is expected to produce 228,000 barrels per day, and maintenance at Kashagan means a total shutdown of the 400,000 barrels per day facility.
Sources said that while this means Kazakhstan can achieve its October quota they also warned that compliance with OPEC+ quotas could become a problem again once the field is returned from maintenance in November.
One source said that, "Given the expansion of Tengiz," it could be impossible to meet the quota.
Chevron, along with its partners, plans to increase production at the Tengiz Project to 850,000 bpd by the first half 2025. The expansion costs for the project are estimated at $49 billion.
Next week, OPEC members will publish estimates of their September oil production.
Saudi Arabia, the group's leader, has repeatedly called for rival producers to improve their compliance. She said it was a priority task that must be completed before OPEC+ releases more barrels in December.
(source: Reuters)
