Kazakhstan to reduce oil production in second half of 2020
The Government of Kazakhstan has adopted the Decree “On Introducing Temporary Restrictions on the Use of Subsoil Sites for Medium, Large and Gigantic Fields Proportionally to Export Volumes”, Strategy2050.kz reports with the reference to primeminister.kz.
The adopted approach allows to meet the needs of the domestic market of the Republic of Kazakhstan in the necessary volumes of oil products, as well as a fair distribution of obligations to reduce oil production for large projects and old fields that are at the stage of a natural decline in production.
The measures taken will reduce the risk of emergency shutdowns of Kazakhstani fields and ensure a stable flow of funds from the export of Kazakhstani oil.
Thanks to the previously taken measures to reduce oil in Kazakhstan and other countries, there is a positive trend in the dynamics of oil prices (as of June 23, 2020, the price of the Brent brand amounted to 42.23 dollars per barrel) and a decrease in the imbalance in the oil market.
