Kazakhstan's June oil and gas output up 2% m/m, source says

• Crude oil production excluding gas condensate rose 1.7% to 1.92 million bpd in June from 1.88 million bpd in May
• Chevron-operated Tengiz field output increased 3.7% to 960,960 bpd while Karachaganak rose 6% to 255,800 bpd; Kashagan dipped slightly by 0.2% to 400,100 bpd
• Kazakhstan's OPEC+ quota is set to increase from 1.599 million bpd in June to 1.608 million bpd in July, with a planned maintenance shutdown at Kashagan postponed from 2026 to 2027

Summary: Kazakhstan Oil and Gas Production Rises in June

Kazakhstan's oil and gas condensate production increased 2% month-over-month in June 2024, reaching 8.59 million metric tons or 2.16 million barrels per day (bpd), up from 2.12 million bpd in May, according to preliminary data.

Key Production Figures:

• Crude oil production (excluding gas condensate) rose 1.7% to 1.92 million bpd from 1.88 million bpd in May
• The Tengiz oilfield, operated by a Chevron-led consortium, posted the strongest gain at 3.7%, reaching 960,960 bpd (3.62 million tons)
• Karachaganak production jumped 6% to 255,800 bpd (976,000 tons)
• Kashagan output declined marginally by 0.2% to 400,100 bpd (1.514 million tons)

OPEC+ Compliance:

Kazakhstan's OPEC+ production quota stood at 1.599 million bpd in June and is scheduled to increase to 1.608 million bpd in July, indicating the country is operating above its quota allocation.

Market Implications:

The production increase comes as Kazakhstan continues expanding output at major fields. Notably, authorities postponed a planned 30-day maintenance shutdown at Kashagan from June 2026 to 2027, which could maintain higher production levels in the near term.

The month-over-month gains, particularly at Chevron's Tengiz field, suggest operational improvements and recovery momentum. However, Kazakhstan's production levels above OPEC+ quotas may raise concerns about compliance among cartel members during a period when the group seeks to manage global supply.