OPEC + agreement positively impacts Kazakhstan's oil-gas industry

16 February 2021 17:00 (UTC+04:00)

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Kazakhstan has seen positive results from joint actions to cut oil production within the framework of OPEC+ to date, a source in the Ministry of Energy told Trend on Jan.13.

According to the source, over the past two years, activities have been carried out to attract investments in the country’s renewable energy sector.

So, the ministry, together with the European Bank for Reconstruction and Development (EBRD), signed a number of agreements and memorandums worth about $375 million on the construction of renewable energy facilities with a total capacity of 512 MW (the total cost of projects is $732 million with institutions and banks).

The ministry stressed that work in this direction will continue.

In September 2019, a Memorandum of Understanding was signed between the ministry and the EBRD on cooperation and support for the development of the use of renewable energy sources in Kazakhstan.

"Within the framework of the above memorandum, the EBRD launched technical support for the ‘Renewable Energy Support Program in Kazakhstan’. The program’s goal is to support the ministry in preparing a project auction for wind energy with ready-made documentation (ready-made site, technical conditions for connections, wind measurements, Pre-EIA, pre-design documentation, and others)", emphasized the source.

According to a representative of the ministry, amid the COVID-19 pandemic growth, a sharp excess of supply over oil demand, the accumulation of oil reserves, and the risks of overflowing world oil storage facilities, Kazakhstan, together with other participants in the OPEC + agreement, on April 12, 2020, decided to reduce oil production.

"As a result of this agreement, a gradual restoration of the balance of supply and demand is observed. The forecast indicators for 2021 are also improving," the source said, adding that the prices gradually recover.

"The price of Brent has increased from $ 19 to $ 40 per barrel today. According to our estimates, additional proceeds of Kazakh exporters by the end of the year due to stabilization of oil quotations will amount to $9-10 billion," concluded the source.