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Kazakhstan Surpasses OPEC+ Oil Quota with September Production Boost

By Vusala Abbasova October 8, 2024

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Kazakhstan’s Ministry of Energy confirmed that the country was adhering to its planned levels of oil production.

Kazakhstan’s oil production exceeded its OPEC+ quota in September, reaching 1.638 million barrels per day (bpd). This marked a substantial increase of 170,200 bpd above the agreed limit of 1.468 million bpd, largely driven by a significant boost in output at the Tengiz oil field, where production surged by 30 percent.

The country’s total crude oil production for the month amounted to 6.55 million tonnes, reflecting a 10 percent rise compared to previous months. When converted to barrels, using Kazakhstan’s traditional factor of 7.3 barrels per tonne, this production translates to approximately 1.6 million barrels per day. Even under this calculation, Kazakhstan still surpassed its OPEC+ quota by 126,500 bpd.

Kazakhstan’s Ministry of Energy confirmed that the country was adhering to its planned levels of oil production. 

“Oil production excluding gas condensate in September was at the planned level,” Reuters quoted the comments from the ministry.

Furthermore, it noted that Kazakhstan was compensating for the overproduced volumes in accordance with its compensation plan.

In light of its commitment, Kazakhstan plans to offset the excess output, particularly during October when the giant Kashagan oil field is scheduled for major repairs, leading to a complete halt in production. This planned downtime is part of Kazakhstan’s broader strategy to align its overproduction with the OPEC+ agreement. In late July, the country announced its compensation plan, which includes a reduction in oil production over the coming months. Kazakhstan has pledged to rectify any excess production by September 2025, ensuring its output meets OPEC+ expectations.

Despite these challenges, Kazakhstan remains a significant player in the global oil market. It ranks as the world’s tenth-largest crude oil exporter and holds about 3% of the world’s oil reserves. Additionally, the country is the third-largest oil producer in the Caspian region, following Russia and Iran, with most of its oil concentrated in major fields such as Kashagan, Tengiz, and Karachaganak.