Kazakhstan breaks the agreement between oil-producing States within OPEC — country dramatically increased the production and has already overtaken Iraq — before the largest violator of quotas in the framework of intergovernmental agreements. About it reports Bloomberg.
The Minister of economy of Kazakhstan Timur Suleimenov reported that the level of production in the country by the end of 2017 increased by 10.5 per cent to $ 86.2 million tons. In November and December 2017 Kazakhstan was producing 130 thousand barrels of oil per day more than stipulated in the agreement OPEC+.
An Agency source close to the organizers of the agreement, States that at the November OPEC summit+ when more than 20 States have agreed to extend the agreement until 2018, everyone already knew that Kazakhstan exceeds the permissible limits of oil production. The source notes that the parties to the transaction decided to ignore the overproduction on the part of Kazakhstan as the public demarche of one of the members of OPEC+ carries more risks than overproduction of one of the participants.
And in 2018, the energy Minister of Kazakhstan Kanat Bozumbayev said that the government intends to increase production even more — up to 87 million tonnes for the year that is about to 1.81 million barrels per day, compared with 1.74 million barrels a day, according to OPEC+.
More than 20 countries to 30 November 2017 have agreed to extend their agreement to reduce oil production in accordance with the previously established quotas. The main lobbyists of the agreement were Saudi Arabia and Russia — world leaders in oil production. The Russian side expressed its readiness to dramatically increase oil production in case of failure of agreement.
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