Kazakhstan Plans to Reduce Oil Production in March
Rollin' Back the Oil Tap: Kazakhstan's Response to OPEC+ Obligations
astana - It's clear as day, Kazakhstan's plan is to cut back on oil production in March, giving their January overproduction a swift kick in the pants. Minister of Energy Almassadam Satkaliyev announced this tough decision during a March 7 press conference.
(Photo credit: gov.kz)
Dig a little deeper, and you'll find the roots of this overproduction were planted by a premature start to production at the Tengiz oilfield—a project originally earmarked for June-July. But a finger on the fast-forward button made it happen in January, thanks to project partners eager to get the ball rolling ahead of schedule.
Vice Minister of Energy Alibek Zhamauov spilled the beans that the lion's share of oil exports sloshes through the Caspian Pipeline Consortium (CPC), which is currently down for some TLC at the Kropotkinskaya pumping station following a February 17 drone attack. Around 70% of the March production cuts will come from this pipeline.
To toe the line with OPEC+ commitments, Kazakhstan will slash output to roughly 1.5 million barrels per day, aiming to make amends for their early-bird production enthusiasm.
Insight: In recent times, Kazakhstan has grappled with maintaining OPEC+ production quotas, often going above its limit. Key drivers of this overproduction include the expansion of the Tengiz oilfield and economic interests[3][4]. Meanwhile, the Caspian Pipeline Consortium (CPC) is a crucial export route for Kazakh oil, transporting it from fields like Tengiz and Kashagan to the Novorossiysk port in Russia[5]. In early 2025, a drone attack on the CPC caused equipment damage and reduced oil flows by about 30%, with some moorings closing up shop, further limiting export capacity[5]. While there's no direct talk about production cuts in March 2023, Kazakhstan's oil sector is hardly a walk in the park, given the challenges of overproduction and impact from export disruptions[1][2][4].
In line with Kazakhstan's efforts to comply with OPEC+ obligations, a significant portion of the cuts in oil production will originate from the Caspian Pipeline Consortium (CPC), which predominantly handles the nation's oil exports. Furthermore, the financial implications of this move in the energy sector could have a profound impact on Kazakhstan's overall industry.
