Kazakhstan’s national oil company KazMunayGas (KMG) says it is fully prepared to navigate recent oil price volatility, even as global benchmarks hit new lows and concerns mount over falling state revenues.
Despite the slump, driven largely by OPEC+ plans to increase output, KMG Deputy Chairman Aset Magauov stated that the company remains confident in its resilience.
OPEC+’s audacious bid to punish its oil-quota cheats prompted a renewed plunge in crude on Wednesday, as growing tensions with Kazakhstan stoked fears of an escalating price war.
Oil markets have been jittery since early April, when the producers’ group led by Saudi Arabia stunned traders by accelerating the revival in its output. This was an apparent effort to discipline over-producing members by driving down prices, yet Kazakhstan — the greatest offender — has continued to pump as usual at its biggest fields.
Over the past few weeks, the Trump administration has attempted to broker a peace deal between Russia and Ukraine, offering a glimmer of hope that the 3-year war could soon come to an end. The U.S. has held separate meetings with Russian and Ukrainian delegations in a bid to reach a lasting deal, but one particular OPEC member is finding itself in the crosshairs of the conflict despite the ongoing peace negotiations.
OPEC+ crude production surged last month as Kazakhstan, which has long flouted the cartel’s output quotas, further breached its agreed limit.
Central Asia’s largest producer said in August that it was targeting 97.2 million metric tons of oil production in 2025. Since that figure was announced, there has been a major shift in OPEC+ production policy that will see members’ output curtailed for much longer than expected
Nostrum Oil & Gas plc, the parent company of Kazakhstan-based oil producer Zhaikmunai LLP, increased its revenue 23.7% year-on-year in H1 2024 to $65.3 million, the company’s press service said.
Non-OPEC producer Kazakhstan, which is part of the OPEC+ output deal, raised its oil production in June, exceeding its quota under the alliance’s agreements, Reuters calculations based on data from sources showed on Wednesday.
Technip Energies, through its joint-venture TKJV LLP with KPSP, announced the signing of a long-term services frame agreement with Karachaganak Petroleum Operating B.V. (KPO) for the development of the Karachaganak oil and gas field onshore northwest Kazakhstan.
The Kazakh authorities have increased their arbitration claims against international oil companies involved in the development of the Kashagan oil field. The claims now exceed $150 billion and seek compensation for lost revenue in addition to ongoing disputes over the production costs.
Prime Minister Olzhas Bektenov and Upstream Director of the Italian company ENI Luca Vignati reviewed ongoing joint work at the Karachaganak and Kashagan fields and explored opportunities for launching new projects in renewable energy sources at a meeting on March 27, reported the Prime Minister’s press service.