Kazakhstan Exceeded OPEC+ Oil Quota in June, Raised Output, Sources Say

SEATTLE (Oil Monster):  Kazakhstan raised oil and gas condensate production in June by 4% from May on a daily basis to 7.24 million metric tons, exceeding its quota within the OPEC+ group of oil producers, according to two sources and Reuters calculations.

Production rose from 7.192 million tons in May, as reported earlier by the Bureau of National Statistics, after the completion of maintenance at the giant Tengiz oilfield.

Excluding production of gas condensate, a type of light oil, crude oil output rose in June to 6.32 million tons from 6.163 million in May.

When using the tons to barrels conversion ratio of 7.3, used by Kazakhstan's energy ministry previously, oil production reached 1.538 million barrels per day (bpd), exceeding the OPEC+ quota by around 70,000 bpd, Reuters calculations showed.

Kazakhstan's oil production quota under the OPEC+ agreement is 1.468 million bpd.

The energy ministry, in emailed comments to Reuters, did not provide output data. It said that the conversion barrels to tons ratio stands at between 6.8 and 8, depending on the density of a given oil grade.

Kazakhstan said in May it was 45,000 bpd above its OPEC+ quota and promised compensate for that and be fully compliant in June.

It has also said Kazakhstan will fully offset all of this year's overproduction by September 2025.

Courtesy: www.reuters.com