Oil output in Kazakhstan to decrease by 20,000 barrels
By Vusala Abbasova
The Organization of the Petroleum Exporting Countries forecasted the decrease in Kazakhstan’s oil production by 20,000 barrels per day in 2015 to average 1.62 million barrels per day.
As compare with its September oil market report, OPEC predicted that Kazakhstan’s oil production will decrease by 10,000 barrels per day in 2015.
OPEC said that Kazakhstan’s August output declined compared to July by a steep 86,000 barrels per day to 1.51 million barrels per day, the lowest level since October 2014. This was due to a 0.1 million barrel per day decline in Tengiz field output.
Preliminary supply data for third quarter of 2015 indicates a decline by 50,000 barrels to 1.55 million barrels per day. Lower investment in mature onshore fields such as Uzen and Emba is weighing on the country’s operations. Indeed, evidence suggests some smaller Kazakh producers have already shut in wells due to poor economics.
Moreover OPEC revised a forecast for Kazakhstan’s oil production for 2016. In its October oil market report, OPEC forecasted that oil production in Kazakhstan will decline by 30,000 barrels per day to average 1.57 million barrels per day in 2016, an upward revision of 10,000 barrels per day from the previous month’s forecast.
Kazakhstan produces oil mainly from its large Karachaganak and
Tengiz fields.
The Karachaganak field is one of the world's largest fields. Its
oil reserves amount to 1.2 billion tons, while natural gas reserves
are estimated at 1.35 trillion cubic meters.
About 49 percent of Kazakhstan's gas and 18 percent of its oil
are extracted from this field.
The Tengiz field in the west of the country is one of the deepest
and largest oil fields in the world. The total estimated reserves
amount to three billion tons (26 billion barrels).
Another large oil and gas field – Kashagan – is located in the north of the Caspian Sea. Oil production at Kashagan started in September 2013, but operations were suspended when a gas leak appeared in the pipeline. According to the plans, oil production at Kashagan is expected by late 2016.
Kashagan is estimated to house roughly 4.8 billion metric tons of oil or about 38 billion barrels, some 10 billion of which are recoverable reserves. There are over one trillion cubic meters of natural gas at the Kashagan field.
Kazakhstan produced 80.845 million tons of oil in 2014, including gas condensate, which is 1.2 percent less than in 2013.
OPEC, which was established in September of 1960, comprises 12 members: Algeria, Angola, Ecuador, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates, and Venezuela.
Currently, more than 80 percent of the world's proven oil
reserves are located in OPEC Member Countries, with the bulk of
OPEC oil reserves in the Middle East, amounting to around 66
percent of the OPEC total, according to the OPEC official
website.
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