Azernews.Az

Friday March 29 2024

EIA ups oil output forecast for Kazakhstan

8 February 2017 14:33 (UTC+04:00)
EIA ups oil output forecast for Kazakhstan

By Nigar Ababsova

The U.S. Energy Information Administration (EIA) has revised its forecasts for the oil output of the resource-rich Kazakhstan.

In its February 2017 short-term energy outlook the institution raised the forecast for the 2017 and 2018 oil output in the country, increasing the projected volume up to 1.86 and 1.88 million barrels per day for 2017 and 2018 respectively.

The previous forecasted indices were at the level of 1.81 for 2017, and 1.85 million bpd in 2018. Oil output in the country totaled 1.73 million bpd in 2016, according to the EIA.

Average quarterly output in 2017 is projected to reach 1.87 million bpd in 1Q2017, 1.85 million bpd in 2Q2017, 1.83 million bpd in 3Q2017, 1.91 million bpd in 4Q2017. In 2018 the index is expected to stand at 1.92 million bpd, 1.8 million bpd, 1.87 million bpd, 1.93 million bpd correspondingly.

Tengiz, Karachaganak and Kashagan are the largest oil fields in Kazakhstan. The country plans to increase its production mainly due to the expansion of production at the Tengiz field, one of the largest fields in the world, as well as increasing output from the Kashagan oil and gas field. The production rate on Kashagan is currently estimated at 180,000 bpd.

Along with other non-OPEC producers, Kazakhstan, in a surprise move in late 2016, agreed to cut its oil output to prop up oil prices and put an end to global oil glut. Kazakhstan has cut its oil production by almost 20,000 bpd since January 1 2017 to fulfill its commitments within the output cut deal with the cartel members and other producers.

To comply with the deal the country implemented cuts at smaller oil fields in Aktobe, Kyzylorda and Mangystau regions, while major strategically important Kashagan, Tengiz and Karachaganak projects were developed according to schedule.

Kazakhstan pledged to keep average monthly production at a 1.68 million bpd level withi first six months of 2017.

Whether the country will agree to extend cuts to the second half of the year is still under a question mark, while the energy ministry of the country previously said that “it is too early” to talk about output reduction in the second half of 2017.

--

Nigar Abbasova is AzerNews’ staff journalist, follow her on Twitter: @nigyar_abbasova

Follow us on Twitter @AzerNewsAz

Loading...
Latest See more