Kazakhstan has yet to deliver oil output and CPC Blend export cuts in March, sources say

Reuters
12 Mar
Kazakhstan has yet to deliver oil output and CPC Blend export cuts in March, sources say

MOSCOW, March 11 (Reuters) - Kazakhstan has yet to deliver its announced oil output and CPC Blend export cuts through the Caspian Pipeline Consortium (CPC), its main exporting route, five industry sources said.

The country is in discussions with oil majors to bring supply back in line with targets set by the Organization of the Petroleum Exporting Countries and allies (OPEC+), its energy minister Almasadam Satkaliyev said on Monday.

Deputy Energy Minister Alibek Zhamauov said on Friday that Kazakhstan will strive to achieve the OPEC+ output quota of about 1.5 million barrels per day in March.

That would mean reducing production by some 400,000 bpd, and CPC shipments accordingly, Reuters calculations based on the data seen by the two sources showed.

Oil and gas condensate production in Kazakhstan on March 10 rose to some 2.18 million bpd, including 1.9 million bpd of crude oil, two of the sources said. This is up from 2.12 million bpd of oil and gas condensate on average in February, according to the data seen by the two industry sources and Reuters calculations.

Kazakh oil exports via the CPC pipeline were in line with the initial loading plan of 6.7 million metric tons for March as of Tuesday, the five industry sources said.

"So far (shipments are proceeding) smoothly, CPC has not made any cuts," one of the sources said.

There were no reported cancellations of CPC Blend cargoes loading in March, a source with a Western major involved in the CPC Blend market said, adding that March-loading cargoes had been sold weeks ago.

Kazakhstan may possibly deliver oil output and CPC Blend export cuts in the second half of the month, two of the sources said.

(Reporting by Reuters; Editing by Kirsten Donovan)

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