5 Dec 2017 12:49

Kazakhstan compromised in backing OPEC + deal extension - Energy Minister

ALMATY. Dec 5 (Interfax) - Kazakhstan compromised in backing the extension of the OPEC + agreement on oil production cuts until the end of 2018, Energy Minister Kanat Bozumbayev said.

"Nearly all member-countries of the OPEC + agreement signed it in Vienna on November 30 to extend it until the end of next year. In other words, they agreed not to increase oil production above the level set forth in the previous agreement. It's challenging for us to do, so we compromised when extending the agreement to maintain the current market price," Bozumbayev told journalists at a Kazakhstan global investment roundtable on Tuesday.

Kazakhstan had discussed terms that might allow for an increase in oil output.

"We've backed the deal, but we know that if we find ourselves in a predicament, we could talk it over with our partners," the minister said.

He noted that the current price at $62-$63 is comfortable for all market participants.

"The price of $62- $ 63 is good. It instills confidence in both oil companies and oil investors, and raises the appeal of oil investment," Bozumbayev said.

On November 30, OPEC and non-OPEC members agreed to extend the agreement to limit oil production through the end of 2018.

The agreement, whereby OPEC countries committed to reduce oil production by 1.2 million barrels per day and non-OPEC countries by 558,000 barrels per day relative to October 2016 levels, came into effect on January 1, 2017.

The parties to the agreement between OPEC and non-OPEC countries to reduce oil production will be able to raise the issue of revising production quotas at a meeting in June if such a need arises, Russian Energy Minister Alexander Novak said at a press conference in Vienna on November 30.