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OPEC cuts forecast for Kazakhstan's oil production

13 July 2016 13:00 (UTC+04:00)
OPEC cuts forecast for Kazakhstan's oil production

By Nigar Abbasova

Kazakhstan's oil production is expected to decline in 2017, OPEC said in its July oil market report. Kazakhstan’s oil production is expected to decrease by 30,000 barrels per day by mid 2017.

Forecast on the oil extraction in 2016 remained unchanged from the previous report and amounted to 1.56 million barrels per day. The report forecast that the decline will occur even if the Kashagan offshore field starts its oil production by mid 2017.

The geological reserves of Kashagan are estimated to be at the level of 4.8 billion tons of oil. The total oil reserves amount to 38 billion barrels with the 10 billion being recoverable reserves. Earlier, Trend reported that oil output at Kazakhstan's Kashagan field is expected to start in October 2016.

Oil production in Kazakhstan has decreased by 30,000 barrels per day and averaged 1.6 million barrels per day in 2015, according to OPEC. Output is expected to reach 1.5 million barrels in the third and fourth quarters of 2016.

Proved oil reserves of Kazakhstan as of early 2016 amounted to 30 billion barrels, according to BP Statistical Review.

Earlier, the Kazakh Statistics Committee reported that oil production in the country decreased by 2.8 percent, to 27.67 million tons in January-May 2016.

Kazakhstan's largest oil fields alongside with Kashagan are Tengiz, Karachaganak.

Tengiz is considered to be one of the largest fields in the world. The project's area includes the Tengiz field and the Korolevskoye field.. Recoverable reserves of the Tengiz and Korolevskoye fields are estimated between 750 million to 1.1 billion tons of oil.

Karachaganak’s oil and condensate reserves stand at 1.2 billion tons. Almost 16 percent of oil produced in Kazakhstan is being extracted from this field.

Kazakhstan's economy depends heavily on the oil sector. It accounts for an estimated 20 percent of GDP, 50 percent of fiscal revenues, and 60 percent of exports.

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

Follow us on Twitter @AzerNewsAz

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