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Kazakhstan exceeded its oil production quota under the OPEC+ deal by 131,000 barrels per day (bpd) in March, due to the weather and heating season requirements, the country’s Energy Ministry said on Sunday, pledging that the non-OPEC producer will look to compensate in the coming months for its overproduction.
“Kazakhstan will continue to make every effort to comply with its obligations and compensate for the 1st quarter overproduction,” the Kazakh Energy Ministry said in a statement.
As agreed by the latest OPEC+ panel meeting earlier this month, Kazakhstan will submit a detailed compensation plan to the OPEC Secretariat by April 30, 2024, said the ministry of one of the non-OPEC producers that are voluntarily reducing their oil production in the first half of the year.
Early this month, the Joint Ministerial Monitoring Committee (JMMC), the OPEC+ panel that monitors oil market developments and the group’s production cuts, didn’t recommend any changes to output policy but noted that compliance with the cuts needs to improve.
The panel, which doesn’t decide on policy but only recommends a course of action to the ministers, said on April 3 that it welcomes repeated pledges from Iraq and Kazakhstan to reach full conformity with the cuts they have announced.
The panel “welcomed the Republic of Iraq and the Republic of Kazakhstan’s pledge to achieve full conformity as well as compensate for overproduction,” OPEC said.
Kazakhstan, as well as several other non-OPEC and OPEC producers part of the OPEC+ pact, pledged in November additional voluntary cuts of a total of 2.2 million bpd for the first quarter of 2024. The reductions included a rollover of the extra Saudi production cut of 1 million bpd, which has been in force since July 2023. These producers extended the cuts into the second quarter and the current output reductions are set to remain in place until the end of June.
