Kazakhstan is proceeding with its plan to boost oil production in 2025, despite the Organization of the Petroleum Exporting Countries Plus (OPEC+) extending output cuts to stabilize global oil markets. Prime Minister Olzhas Bektenov directed the Energy Ministry to “intensify efforts to increase natural gas and oil output,” emphasizing the government’s commitment to achieving the planned production levels.
In August, Kazakhstan announced a target of producing 97.2 million metric tons of oil in 2025. This goal remains unchanged even after OPEC+ decided to delay its planned output revival from January to April 2025 and to extend production cuts until the end of December 2026.
Kazakhstan’s oil production strategy is significantly influenced by the Tengiz oil field, one of the world’s largest, operated by Chevron Corporation. A $48.5 billion expansion project at Tengiz is expected to commence production in the second quarter of 2025, contributing to the planned increase in output.
However, Kazakhstan’s commitment to OPEC+ has been under scrutiny. The country has previously exceeded its production quotas, raising concerns among OPEC+ members. In September, Kazakhstan’s crude oil production rose by 10% compared to August, reaching 6.55 million tons, surpassing its OPEC+ quota.
OPEC+ has been implementing production cuts to address global oil market challenges, including fluctuating demand and price volatility. The group, which includes major oil producers like Saudi Arabia and Russia, agreed to extend additional voluntary production cuts totaling 2.2 million barrels per day until the end of March 2025, with a gradual phase-out planned thereafter.
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