BAKU, Azerbaijan, Jun. 23
By Nargiz Sadikhova - Trend:
Kazakhstan will go on reducing oil extraction volume in 2H2020, Trend reports with reference to the press office of Kazakhstan’s prime minister.
The Kazakhstan’s government has adopted a decree ‘On Introducing Temporary Restrictions on the Use of Subsoil Plots for Medium, Large and Gigantic Fields Proportionally to Export Volumes’.
The report said that the approach taken allows to meet the needs of the local market for oil products and provides for a fair distribution of obligations to reduce oil production under large projects as well as from old fields which are at the stage of a natural decline in production.
The measures will reduce the risk of emergency shutdowns at Kazakh fields and will ensure a stable flow of funds from Kazakh oil export.
“Thanks to the previously taken steps to reduce oil in Kazakhstan and other countries, there is a positive trend in the dynamics of oil prices and a decrease in the imbalance in the oil market,” the ministry said.
On the morning of March 9, 2020, Brent crude plunged 25 percent dropping to its lowest since February 2016 and recording the biggest one-day percentage declines since Jan. 17, 1991.
Trading volumes in the front-month hit record highs in the previous session after a three-year pact between Saudi Arabia and Russia and other major oil producers to limit supply fell apart on March 6, 2020.
The extraordinary meeting of OPEC+ ministers was held on Apr. 12, 2020, following which the agreement to reduce oil production by 9.7 million barrels a day was signed for the period of two months starting from May 1, 2020.
Kazakhstan, in its turn, has supported the consensus in the agreement having taken the liability to decrease oil production by 390,000 barrels a day.
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