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Non-OPEC producer Kazakhstan, which is part of the OPEC+ output deal, raised its oil production in June, exceeding its quota under the alliance's agreements, Reuters calculations based on data from sources showed on Wednesday.
Kazakhstan's giant oilfield Tengiz has completed planned maintenance, which raised the country's production in June compared to May. According to Reuters calculations of output data, Kazakhstan produced 1.538 million barrels per day (bpd) of crude last month, up from May, and about 70,000 bpd above its OPEC+ cap of 1.468 million bpd.
Asked to comment on the production data from sources and Reuters' calculations, Kazakhstan's Energy Ministry told Reuters that the conversion rate for converting tons to bpd is between 6.8 and 8, depending on the density of a crude grade, and did not provide specific production data.
Reuters used a 7.3 conversion ratio.
Kazakhstan has vowed to compensate for overproduction in the OPEC+ deal, as the non-OPEC producer, together with OPEC's second-largest producer Iraq, have regularly exceeded their allocated quotas.
The Joint Ministerial Monitoring Committee (JMMC), the OPEC+ panel that monitors oil market developments and the group's production cuts, earlier this year noted that compliance with the cuts needs to improve.
In May, OPEC and Kazakhstan discussed compensation plans for 389,000 bpd of Kazakhstan's cumulative overproduction between January and March 2024.
Kazakhstan's Energy Ministry said in June that independent sources approved by OPEC+ found that the country had exceeded its quota under the deal by 45,000 bpd in May.
Kazakhstan vowed to submit a compensation schedule to the OPEC Secretariat.
"Kazakhstan will address this overproduction and will fully comply in June, including complying with additional voluntary cuts," the ministry said last month.
"Furthermore, the Republic of Kazakhstan will compensate for the surplus in production since the beginning of 2024 during the compensation period, which extends until the end of September 2025."
By Charles Kennedy for Oilprice.com
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