KEY POINTS
- Kazakhstan’s crude oil production hit 2.12 million bpd, exceeding its OPEC+ quota.
- Production rates escalated due to the Tengiz oilfield expansion efforts.
- Despite a pipeline attack, Kazakhstan’s oil exports remained unaffected.
Kazakhstan’s crude oil and gas condensate production surged to a record 2.12 million barrels per day (bpd) in February, marking a 13 percent increase from January.
According to sources familiar with official statistics, crude oil production alone climbed 15.5 percent to 1.83 million bpd, excluding gas condensate, a lighter form of crude oil.
This latest increase means Kazakhstan has once again surpassed its OPEC+ production quota of 1.468 million bpd.
The country had previously committed to compensating for overproduction, but rising output from the Chevron-led Tengiz oilfield has continued to push production levels higher.
Tengiz expansion fuels production spike
The Tengiz oilfield, Kazakhstan’s largest oil-producing site, saw a significant boost in production following the completion of maintenance and an ongoing expansion program.
Output at Tengiz rose to 904,000 bpd in February, up from 640,000 bpd in January, making it a key driver behind the country’s overall increase in crude production.
Despite exceeding its OPEC+ agreement, Kazakhstan remains committed to its long-term production goals.
However, the extended overproduction in this nation might trigger OPEC+ member discussions about increasing their cooperation levels.
Meanwhile, the Kazakh Energy Ministry has yet to comment on the production spike, leaving uncertainty about whether the country will take corrective measures to align with its OPEC+ commitments.
Pipeline disruptions fail to slow supply
The recent challenge of a drone attack at the Caspian Pipeline Consortium (CPC) Russian station did not stop Kazakhstan from raising its oil production levels.
According to Reuters, the CPC transports 80 percent of Kazakhstan’s oil exports so it represents an essential piece of national infrastructure.
The attack did not affect the planned schedule for oil transportation through the CPC pipeline which minimized global supply chain disruptions.
The stable operation of Kazakhstan’s exports demonstrates the nation’s position as a major oil-producing region.
The world market follows Kazakhstan’s upcoming steps as the country advances its petroleum sector, by maintaining strong production and carrying out infrastructure modernizations.
Continued financial investments in the Tengiz oilfield along with energy projects will keep Kazakhstan a prominent force within the worldwide oil industry.
