ASTANA (TCA) — Kazakhstan will cut its oil production to 74 million tons if the oil price falls below $30 per barrel, the country’s Deputy Energy Minister Asset Magauov told a press conference on February 23, the official website of the Prime Minister of Kazakhstan reported.
“This year we plan to reach [oil production] of 77 million tons at $40 per barrel. It is a significant reduction of about 3 million tons [compared to last year]. We believe that the price will continue to decline. If the price is below $30 per barrel, the production can be cut to 74 million tons. Subsoil users themselves have made such decision taking into account their financial capability,” the Deputy Minister said.
He also commented on media reports about possible oil production freeze at the level of January, negotiated between some OPEC countries and Russia.
“There were talks between OPEC countries and Russia on oil production freeze at the level of January of this year. But it must be noted that during the entire last year the countries of the OPEC and the Russian Federation consistently increased their oil production. So the production level is at a very high level now,” Magauov said.
As to Kazakhstan, many subsoil users have reduced capital investment and drilling works, and the country’s oil production has decreased, the Deputy Minister said.
