Energy Ministry Decreases Five-Year Oil Production Forecast

The Kazakh Ministry of Energy has decreased its oil production forecast through 2020 by 11.5 percent. The new forecast has production reaching 92 million tonnes in 2020.
“Oil production will reach 77 million tonnes in 2016 and 92 million tonnes in 2020, which is less than the amount of 3.8 million tonnes and 12 million tonns correspondingly than were forecasted before,” Vice Minister of National Economy Marat Kussainov said at the presentation of the national budget for 2016–2018 in the Mazhilis (lower house of Parliament).

The project of the three-year budget is based on the social and economic development forecast, which was approved by the cabinet in August.

In February, Deputy Energy Minister Uzakbai Karabalin stated that Kazakhstan was planning to increase oil production beginning in 2017, saying, “in spite of the decrease of oil production in the accounting period, it is planned to increase oil production in the following years. In 2017, we plan to increase oil production up to 86 million tonnes and up to 104 million tonnes in 2020. This increase will be connected with development at the Tengiz oil deposit and reopening Kashagan production.” Meanwhile, he said that the oil production forecast for 2016 was decreased because of the drop in oil price in the past week.

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