Kazakhstan, a top-10 global oil producer, exceeded its OPEC+ quota by 23% in April, pumping 1.814 million barrels per day (bpd)—down 3% from March but far above its 1.473 million bpd limit. This marks another breach of the group’s agreement, sparking tensions with fellow members.
Key Drivers & Implications:
- National Over Compliance: Energy Minister Erlan Akkenzhenov recently stated Kazakhstan would prioritize domestic interests over OPEC+ targets, though it pledged to offset excess production with 1.3 million bpd in cumulative cuts by 2026.
- Tengiz Field Slowdown: Output at Chevron-led Tengiz, Kazakhstan’s largest field, fell to 882,000 bpd (from 950,000 bpd in March), but expanded infrastructure (e.g., Caspian Pipeline) boosted Q1 exports 7% YoY to 1.63 million bpd.
- Western Oil Majors at Risk: Shell, Exxon, TotalEnergies, and Eni operate in Kazakhstan, exposing them to potential OPEC+ backlash or quota enforcement measures.
Kazakhstan Defies OPEC+ Again: April Oil Output 23% Over Quota Despite Production Dip