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In second half of 2020, Kazakhstan will continue to reduce oil production

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by June 23, 2020 General

Government of the Republic of Kazakhstan adopted a Decree “On Introducing Temporary Restrictions on the Use of Subsoil Sites for Medium, Large and Gigantic Fields Proportionally to Export Volumes.”

The adopted approach allows to meet the needs of the domestic market of the Republic of Kazakhstan in the necessary volumes of oil products, as well as a fair distribution of obligations to reduce oil production for large projects and old fields that are at the stage of a natural decline in production.

The measures taken will reduce the risk of emergency shutdowns of Kazakhstani fields and ensure a stable flow of funds from the export of Kazakhstani oil.

Thanks to the previously taken measures to reduce oil in Kazakhstan and other countries, there is a positive trend in the dynamics of oil prices (as of June 23, 2020, the price of the Brent brand amounted to 42.23 dollars per barrel) and a decrease in the imbalance in the oil market.

 

 

Source: Prime Minister of the Republic of Kazakhstan

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