Oil & Gas

Kazakhstan, a non-OPEC oil producer participating in the OPEC+ agreement, is contemplating the construction of an oil pipeline in the Caspian Sea, according to a report by the Russian news agency Interfax citing Kazakhstan’s Energy Ministry.

The country is also exploring the possibility of building another oil pipeline from Atyrau to Kuryk in the medium term, as stated by the Kazakh Energy Ministry in response to inquiries. Additionally, the ministry mentioned that they would study the feasibility of constructing an oil pipeline across the Caspian Sea floor.

Kazakhstan is considering increasing its oil trans-Caspian shipments to match the capacity of the Aktau port, according to the energy ministry.

Over the past year, Kazakhstan has increased its crude oil exports and plans to continue boosting exports in 2024. Currently, most of Kazakhstan’s crude oil exports are managed by the Caspian Pipeline Consortium (CPC), which transports 80% of Kazakh crude exports from the Caspian coast in northwest Kazakhstan to the Novorossiysk port on Russia’s Black Sea coast.

Kazakhstan has surpassed its oil production quota under the OPEC+ deal this year. In March, the country exceeded its quota by 131,000 barrels per day (bpd) due to weather conditions and heating season requirements. The Kazakh Energy Ministry stated that Kazakhstan is committed to achieving compliance and intends to compensate for previous overproduction in the coming months.

The Joint Ministerial Monitoring Committee (JMMC), which monitors oil market developments and the group’s production cuts, did not recommend any changes to output policy earlier this month but emphasized the need for improved compliance with the cuts.