ASTANA, Kazakhstan, February 17. Kazakhstan will present an updated compensation plan that considers both overproduction and unfulfilled compensation volumes in January 2025 within the OPEC+ Agreement, said Kazakhstan's Minister of Energy, Almassadam Satkaliyev, during telephone talks with OPEC leadership, Trend reports via the Ministry of Energy of Kazakhstan.
Kazakhstan's Minister of Energy, Almassadam Satkaliyev, held telephone negotiations with His Royal Highness Prince Abdulaziz bin Salman, Chairman of OPEC+ and Minister of Energy of the Kingdom of Saudi Arabia, and Alexander Novak, Deputy Prime Minister of the Russian Federation and Co-Chair of OPEC+, as well as with Haitham Al-Ghais, Secretary General of OPEC.
During the discussion, Almassadam Satkaliyev provided a technical explanation regarding the increase in oil production in Kazakhstan in January. The minister clarified that the increase was due to the commencement of oil extraction at a new third-generation plant at the Tengiz oil field as part of the Future Expansion Project. He explained that the increase was initially planned to start in June-July 2025.
Satkaliyev also mentioned that the uptick in production was a byproduct of a one-off test carried out post-maintenance at the field and the launch of the new processing facility at the Tengiz field.
He confirmed that Kazakhstan remains fully committed to its obligations under the OPEC+ Agreement, including the compensation mechanism. Kazakhstan will take further measures to meet its commitments, including reducing production at other oil fields to compensate for the January overproduction.
The Chairman and Co-Chair confirmed the critical importance of fully meeting obligations and compensation under the OPEC+ Agreement and emphasized the role of voluntary reductions and efforts undertaken by several OPEC+ countries to maintain market stability.
To note, previously, Kazakhstan confirmed its commitment to the OPEC+ Agreement at the 58th OPEC+ Joint Ministerial Monitoring Committee meeting. Kazakhstan will take the required steps in 2025 and 2026 to achieve its obligations and compensate for excess production in 2024.
