Kazakhstan expects to stabilize oil output in 2017

According to the Kazakhstan’s Energy Minister Bozumbayev, Tengizchevroil, Karachaganak Petroleum and Kashagan oilfield will step up oil production.

Despite setbacks during the last two years, oil production remains Kazakhstan’s main source of income. For the third time this year Kazakhstan reduces the level of crude production due to low hydrocarbon prices. Kazakhstan plans to produce 74 million tons of oil this year. The forecast was made considering the world oil price of $30 per barrel.

“According to international experts, the oil prices will stabilize in the mid $60-65 range in 2017-2018. But Kazakhstan expects that the crude oil market will stabilize in 2017.

Oil price growth will enable to increase well drilling and beat the target of this year. Tengizchevroil, Karachaganak Petroleum and Kashaganoilfield will step up oil production in Kazakhstan. This year Tengizchevroil and Karachaganak Petroleum will cut oil output by 26,4 and 11,6 million tons respectively. Both companies expect oil production increase by 2022,” said Minister of Energy Mr. Kanat Bozumbayev.

However, Kashagan’s future is still in question. First attempts to operatet Kashagan, were made in September 2013, but were halted almost immediately due to the pipeline leaks. “Nevertheless, the production will start in December 2016, as planned,” said Mr. Bozumbayev.

However, previously Bozumbayev made a statement that if oil prices went up to $40, Kazakhstan might increase the oil output by 77 mln tons.

Today crude oil Brent shows trend – $50 per brl.