Kazakh oil output set to rise after planned 2019 dip

Subject

Kazakhstan's oil extraction sector.

Significance

Kazakh Energy Minister Kanat Bozumbayev announced on February 8 that oil production was expected to fall to 89.5 million tonnes this year from 90.3 million tonnes last year. Bozumbayev attributed the dip to scheduled shutdowns at three major oilfields, which will help Kazakhstan meet its commitment to cut output as agreed with OPEC members and non-members.

Impacts

• The long-expected initial public offering of shares in the state-owned KazMunayGaz has been postponed beyond 2019.
• Refined products output is planned to exceed 12 million tonnes this year, based on a 5% year-on-year rise in the volume of crude processed.
• With domestic demand expected to be met for the first time, Kazakhstan will start exporting fuel to its Central Asian neighbours this year.