Kazakhstan Produces Crude Oil for KZT5tn in Jan-Jul 2017

From January to July, Kazakhstan has produced crude oil for KZT 5 trillion in money terms, which is 27.2% higher than the figure achieved over the same period in 2016. 

In physical terms, the oil production in the reporting period has reached 42.1 million tons or 9.4 percent more than in January-July last year. Of which, Atyrau region produced 54% and 57.8% by value and volume respectively. In particular, 4.3 million tons of oil was recovered in the Kashagan field, while the Tengiz field produced 14.59 million tons in January-June.  

Following the results of H1 2017, sales of crude oil in Kazakhstan's domestic market has increased 2.2 times up to 3.1 million tons. At the same time, the country has exported 78.1% of the produced oil and gas condensate and 91.4% of the crude oil, amounting to 32.8 million tons in physical terms. 

In monetary terms, the exports of crude oil and refined products have increased by 45.6pct. Moreover, over two-thirds of the export volumes, 68.3% by volume and 68.7% by value, have been shipped to four European countries: Italy, Holland, France, and Switzerland. 

In January-July, 2017, the oil price was $51.7 a barrel, whereas, in 2016, it amounted to $44. According to the consensus forecast, the price is projected to be $53.5 a barrel this year, and $55.3 in 2018, followed by a moderate increase over the medium term. 

It is noted that the Government sets $45 a barrel as a conservative crude price for the base scenario during the next-year budget establishment. The real growth of the gross domestic product as per this scenario is expected to be 3.1% in 2018, with a subsequent increase to 4.2% in 2022. The optimistic scenario assumes an increase in the oil price up to $55 a barrel in 2018-2022, while the pessimistic one supposes a decrease down to $35.