Kazakhstan’s oil production surged to a record 2.16 million barrels per day (bpd) in March, exceeding its OPEC+ quota by nearly 400,000 bpd, according to industry sources and Reuters calculations. The increase, driven by expanded output at major fields operated by U.S. firms like Chevron and Exxon Mobil, has sparked tensions within the OPEC+ alliance.
Key Data:
March Output: 4.6 million metric tons (2.16 million bpd) from March 1–16, up from 2.12 million bpd in February.
OPEC+ Quota: Kazakhstan’s crude oil production is capped at 1.468 million bpd, but condensate output is unrestricted.
Exports: Caspian Pipeline Consortium (CPC) flows remain strong, with April exports planned at 1.7 million bpd.
OPEC+ Tensions:
Kazakhstan has repeatedly breached its quotas, prompting OPEC+ to demand compensation cuts.
The country’s Energy Minister stepped down amid pressure to comply, but U.S. oil majors resist reducing output after investing billions in field expansions.
Global Impact:
Record Kazakh output contributed to OPEC+’s decision to ease production cuts starting in April.
The surge highlights challenges in enforcing quotas within the alliance, particularly with non-OPEC members like Kazakhstan.