More oil expected from Kazakhstan, though lack of export options could impede growth. Photo courtesy of North Caspian Operating Company.
May 12 (UPI) -- Kazakhstan could add at least another quarter million barrels of oil per day to the market through new field development, a country assessment found.
The U.S. Energy Information Administration updated its country profile for Kazakhstan, noting the landlocked Central Asian country last year reached major milestones with oilfield developments. In October, the giant Kashagan field resumed production following several years of delays. At its peak, Kashagan should produce at least 370,000 barrels per day. In July, a consortium managing the Tengiz reservoir "decided to proceed with expansion plans that should increase liquids production at the Tengiz project by about 260,000 bpd beginning in 2022," the EIA's assessment read.
Kazakhstan is one of the 12 producers outside of the Organization of Petroleum Exporting Countries that agreed to curb output by about 558,000 barrels per day as part of a multilateral effort to balance an oversupplied market.
According to OPEC's monthly market report for May, oil production from Kazakhstan is expected to increase by about 150,000 bpd this year. Oil production from the country averaged 1.72 million bpd during the first quarter, which was up 40,000 bpd from first quarter 2016.
"The Kashagan ramp-up was steeper than expected in March, reaching 190,000 bpd at the end of the month, while output was around 130,000 in February, five months after its restart," OPEC economists reported. "However, the government hopes to reduce oil production at other fields in the coming months when the weather becomes warmer."
The EIA stated that total estimated production for last year was 1.7 million barrels per day and continued growth depended on output at least from Kashagan and Tengiz.
"Development of additional export capacity will also be necessary for production growth," the report read.