Kazmunaigas Production Hit by Opec-Plus Cuts

Copyright © 2021 Energy Intelligence Group

Kazakhstan's state-owned Kazmunaigas (KMG) saw crude oil production drop by 6.6% to 449,000 b/d during the first nine months of the year compared to the same period in 2019, while gas output dropped just 1% to 6.173 Bcm, the company said in a business update. The main reason for the drop in oil production was the Opec-plus cuts that came into force in May and forced the republic to cut levels by around 20% (NC Oct.22'20). The biggest cuts came from the Chevron-led Tengizchevroil (TCO) joint venture, in which KMG owns a 20% stake, where output fell over 8% to 585,000 b/d in January-September, with gas production falling 7% to 2.238 Bcm. Output at the giant offshore Kashagan field, in which KMG owns an 8.44% interest, increased by around 14% to 333,000 b/d in the first nine months, although current production is down more than 15% compared to the first quarter, when it was in the range of 380,000 b/d. Kashagan also produced 576 MMcm of gas, mostly for reinjection. Karachaganak, which as a condensate field is exempted from the Opec-plus cuts, recorded a 7.4% rise in liquids output during the nine-month period, averaging out at around 230,000 b/d. Gas production rose by a similar ratio to 15 Bcm, used both for reinjection and sales via Russia. KMG owns a 10% stake in the Karachaganak Petroleum Operating Co., which is jointly operated by Eni and Royal Dutch Shell. Oil production from KMG’s onshore fields, chiefly Uzen and Emba in western Kazakhstan, fell around 8.5% to 281,000 b/d, due to a combination of Opec-plus cuts and natural declines. Gas output fell 3.7% to 1.858 Bcm. • Kazakhstan's total crude oil and gas condensate production dropped 3.5% to 64.72 million metric tons (1.79 million b/d) in the first nine months of 2020 compared to the same period last year (table; NC Oct.24'19).

Urals crude is under pressure after Saudi Arabia cut its November official selling prices, while the European diesel market enters a period of increasing tightness.
Wed, Oct 13, 2021
US crude’s march above $80 has left many wondering how short-cycle shale suppliers might respond. Energy Intelligence examines the factors in play.
Fri, Oct 15, 2021
Oil giant Saudi Aramco is weighing a supplementary dividend payment for its minority shareholders after oil prices rose above $80/bbl.
Thu, Oct 14, 2021