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Will Kazakhstan reduce oil production? – Vice Minister of Energy

18 March 2020 20:42

NUR-SULTAN. KAZINFORM Vice Minister of Energy Asset Magauov expressed his opinion regarding the possible oil production cut in Kazakhstan, Kazinform correspondent reports.

«We have conducted a preliminary analysis of the impact of various price scenarios on the level of oil production in Kazakhstan. In general, various companies’ expenditures vary significantly depending on the stage of deposit development. Lifting costs at large projects comprise $10 per barrel. With the consideration of transportation costs, prices may reach $25 dollars per barrel. As for older deposits which have been developed for a long time, costs may reach $30-35 per barrel since there are expenditures associated with transportation, production and taxes,» the Vice Minister said.

He added that in the current price corridor, Kazakhstan does not expect any pressure on the oil output level.

«Together with the companies we carry out a detailed analysis of the situation at various price scenarios, up to $20-25 per barrel. I believe that the analysis will be compiled as soon as possible,» Asset Magauov noted.