Kazakhstan intends to extend OPEC+ deal on reducing oil production in 2019

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12 November, 2018, 11:19 349
Kazakhstan intends to extend OPEC+ deal on reducing oil production in 2019

Kazakh Deputy Minister of Energy Magzum Mirzagaliyev informed. 

According to Mirzagaliyev, Kazakhstan stands for the continuation of the OPEC+ deal aiming at reducing the oil production in 2019, which is under discussion, including volumes, BNews,      kz reports referring to TASS

"The cooperation and collaboration and agreement are very right and timely. It has served for interests of oil-producing states, and for consuming countries. It was beneficial for each side," he said. 

According to the Deputy Minister, decisions on volumes and a reduction for a certain period will likely be known in December.

Kazakhstan prefers to agree on a reduction in oil in 2019 within the OPEC+ deal from the production level of late 2018, Mirzagaliyev said. 

"We would prefer the end of the year - October-November 2018," he said. 

In its turn, Saudi Arabia called for a reduction in oil production in 2019 from the level of August-October 2018, the Deputy Minister said. "His opinion [the Saudi Arabian Minister of Energy] is that it is necessary to take the last three months - August, September, October of this year," said Mirzagaliyev. 

According to him, the Ministry's Monitoring Committee discusses several options. 

"They might be some average figures from the year's beginning to October inclusive or three months; August, September, October. All this will be under discussion," said the Deputy Minister. 

Also, according to Mirzagaliyev, Kazakhstan will discuss scope for special conditions for Kashagan, which is the largest project in the country launching in late 2016. 

"We are to raise this matter today as we plan to increase oil production in Kashagan in the next year," he said answering the question whether he will discuss exceptions for Kashagan if OPEC+ returns to a reduction in 2019. 

The Deputy Minister also noted that in 2017, when the deal fully functioned, the possibility to increase production for Kashagan was set out. 

He added the possibility for Kazakhstan to reduce oil production will depend on the month that will be taken as a basis for reduction. According to Mirzagaliyev, OPEC+ has no universal consensus on what level should be chosen for reduction. "Today we are to be presented with the figures for the existing surplus balance, and from which we will hold discussions," he said.