KazMunayGas meeting OPEC+ quotas, maintenance will ensure cutbacks

ASTANA. Aug 26 (Interfax) - Kazakhstan's oil company KazMunayGas (KMG) consistently fulfills its oil production commitments under the OPEC+ agreement and adheres to the quotas set by Energy Ministry, KMG told Interfax.

"Regarding major assets such as Tengizchevroil LLP and North Caspian Operating Company N.V. (NCOC), where KazMunayGas collaborates with foreign partners, maintenance and repairs are currently underway on Tengiz's production lines, and maintenance is planned for the Kashagan project in October. These activities will result in a significant reduction in production, which remains within the approved oil production quotas," KazMunayGas said.

Zhiger Zhokebayev, the head of KMG's upstream department, said earlier that the company had not received instructions to reduce oil production to compensate for overproduction under OPEC+. He added that repairs began on two production lines at Tengiz in August, and maintenance, including the replacement of a gas separator, is planned for Kashagan in October.

"A comparative reduction in production is expected as part of these activities," Zhokebayev noted.

Kazakhstan's overproduction under OPEC+ from January to July amounted to 699,000 b/d, and the country must compensate for 49,000 bpd in August. In July 2024, Kazakhstan exceeded its OPEC+ quota by 120,000 bpd against a quota of 1.45 million bpd.

In response to overproduction, Kazakhstan has updated its compensation plan for oil production under the OPEC+ agreement.

KazMunayGas is Kazakhstan's national operator for the exploration, production, processing, and transportation of hydrocarbons, representing the state's interests in the oil and gas industry.