KazMunayGas has not received instructions from Energy Ministry to revise oil output target following OPEC+ decision
ALMETYEVSK. July 11 (Interfax) - Kazakhstan's National Company KazMunayGas (KMG) has not received any directives from the government concerning possible adjustment of the oil production target following OPEC+'s decision to increase output in August, KMG CEO Askhat Khasenov said.
"Our company strictly follows the instructions of our Energy Ministry, and we continue to operate within the existing guidelines. No new directives have been issued so far," Khasenov told reporters on the sidelines of the Oil Summit in the Republic of Tatarstan, Russia, on Friday.
The eight OPEC+ member states, which decided to voluntarily limit oil production by 2.2 million barrels per day in 2023, namely, Saudi Arabia, Russia, Iraq, the United Arab Emirates, Kuwait, Kazakhstan, Algeria, and Oman, will increase production quotas by 548,000 bpd in August, the OPEC said earlier this week.
This is equivalent to four monthly increments agreed in the spring of 2025. The OPEC+ countries decided at the time that an increase of production would start monthly in April and last until September 2026 in monthly increments of about 130,000-140,000 bpd. However, it was decided to increase production by 411,000 bpd in May, June and July. The same scenario was considered for August.
As of April 2025, over-production reached 4.6 million bpd. Iraq exceeded production by nearly 2 million bpd, Kazakhstan by 1.3 million bpd and Russia by 0.7 million bpd. However, Kazakhstan said in May that it would not cut oil production that was increased earlier this year with the launch of new capacity at the Tengiz field. Since February, the country has been producing approximately 300,000-400,000 bpd above agreed levels.
All eight countries confirmed their intent to fully compensate for any crude oil volume that has been produced above the OPEC+ approved limits after January 2024.
The next OPEC meeting that will announce a decision on the production level for September is scheduled for August 3.
According to the existing quotas and the latest compensation schedules, approved oil production levels for the next month are set at 9.181 million bpd for Russia (without compensation, the quota would have been 9.344 million bpd), 4.041 million bpd for Iraq, 3.262 million bpd for the UAE, 2.480 million bpd for Kuwait, 1.391 million bpd for Kazakhstan and 773,000 bpd for Oman.
Kazakhstan's Energy Ministry said earlier that it will consult with OPEC leadership and OPEC+ partners regarding its obligations.
