MOSCOW, Oct 9 (Reuters) - Kazakhstan's biggest oil field
Tengiz, operated by U.S. major Chevron ( CVX ), boosted output
to a record high in October, sources told Reuters, potentially
complicating the country's future efforts to comply with its
OPEC+ quota.
OPEC+ has named top 10 global oil producer Kazakhstan along
with Iraq and Russia as countries that have repeatedly failed to
comply with its pledges to curb oil production this year.
Tengiz boosted daily production to 699,000 bpd in early
October from 687,000 bpd in September, when output increased by
30% from August after the completion of maintenance, said two
industry sources familiar with the data.
The field's operator Tengizchevroil, which has invested more
than $70 billion since the project's inception in 1993, said its
operations were continuing as usual and declined further
comment.
Chevron ( CVX ) owns a 50% stake in the venture. Exxon Mobil ( XOM )
controls 25%, KazMunayGaz has a 20% stake, and
Russia's Lukoil owns 5%.
The Kazakh energy ministry did not reply to a request on
comment about oil production plans for 2024 and 2025.
Kazakhstan - which relies on Tengiz and two other major
fields, Karachaganak and Kashagan, for most of its production -
is subject to output targets as a member of OPEC+, an alliance
of OPEC and other top producers led by Russia
The country's oil production quota under the OPEC+ deal
stands at 1.468 million bpd, a target it exceeded in September
by around 170,000 bpd, according to Reuters calculations.
It is likely to remain within its targets this month because
it will shut down the Kashagan field for maintenance, sources
said.
Overall October production data from Kazakhstan is not yet
available, but sources said Karachaganak will produce its
regular volumes of 228,000 bpd, while maintenance at Kashagan
will entail a complete stoppage of its 400,000 bpd facility.
While that means Kazakhstan will be able to achieve its
October quota, the sources said, complying with OPEC+ quotas
might become problematic again when the field returns from
maintenance in November.
"Taking into account the expansion of Tengiz, compliance
with the quota could become impossible," one of the sources
said.
Chevron ( CVX ) and its partners plan to expand output at the Tengiz
project to 850,000 bpd in the first half of 2025. Expansion
costs at the project stand at around $49 billion.
OPEC will release estimates of its members' September oil
output next week.
The group's leader Saudi Arabia has repeatedly called on
rival producers to improve compliance, saying it was the most
paramount immediate task before OPEC+ embarks on releasing more
barrels from December.