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Kazakhstan to compensate for overproduction of oil under OPEC+ deal during 2024

The Kazakh Ministry of Energy noted that they understand the importance of conformity to the obligations by each country and maintaining cooperation in order to stabilize the oil market

ASTANA, April 24. /TASS/. The Kazakh authorities will compensate for the volume of oil production exceeded in the first quarter within the framework of the OPEC+ agreement during 2024. This was reported by the press service of the Ministry of Energy of Kazakhstan.

"Following the decision of the 53rd meeting of the Joint Ministerial Monitoring Committee (JMMC), Kazakhstan prepared a detailed Compensation plan, according to which it will gradually compensate for the 1st quarter overproduction during 2024. Kazakhstan will make every effort to comply with its obligations and compensate for overproduction according to the proposed Compensation plan," the ministry says.

The ministry noted that they understand the importance of conformity to the obligations by each country and maintaining cooperation in order to stabilize the oil market. The ministry recalled that Kazakhstan extended its current voluntary obligations until the end of June 2024.

On April 14, the Ministry of Energy of Kazakhstan reported that, according to secondary sources, the country exceeded its oil production commitments by 131,000 barrels per day in March. This is due to climatic conditions and the length of the heating season. The republic will continue to make every effort to fulfill its obligations and compensate for overproduction in the first quarter. In accordance with the decision of the 53rd meeting of the joint ministerial monitoring committee, Kazakhstan was required to submit a detailed compensation plan to the OPEC secretariat by April 30, 2024.

In March, several OPEC+ countries, including Russia and Saudi Arabia, announced the extension to the second quarter of 2024 of measures for additional voluntary reductions in oil production, which were originally intended for the first quarter. Kazakhstan also extended an additional voluntary reduction in oil production by 82,000 barrels per day into the second quarter of 2024 in coordination with some OPEC+ member countries. That means that by the end of June 2024, production in Kazakhstan will be 1.468 million barrels per day.

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