Kazakhstan's oil output to grow 2% to 87.9 million mt in 2022 - minister

Quantum Commodity Intelligence - Kazakhstan's government plans to increase crude oil output to 87.9 million mt in 2022 from 86 million mt in 2021, economy minister Aset Igraliev said at a government meeting Tuesday.

Output figures could rise to 107.4 million mt by 2026, Igraliev said as part of the ministry's wider forecast for economic growth over the next half-decade.

Oil revenues for the National Fund, Kazakhstan's sovereign wealth fund, are set to grow from KZT 2.5 trillion ($58.8 billion) in 2022 to KZT 3 trillion in 2024 with the price of crude budgeted at $64.50/b in 2022 and $58/b in 2023.

According to Quantum data, Brent for 2022 averaged just over $69/b at Tuesday's Singapore MOC (Market on Close) 

Kazakhstan produced 49.8 million mt and exported 39.3 million mt of crude oil and condensate in the first seven months of 2021, according to government data released earlier this month.

The 2.2% year-on-year growth forecast comes as OPEC+ members have started to ratchet up output, with Kazakhstan allocated an increased August quota of 1.491 million bpd.

The OPEC+ group is scheduled to add 400,000 bpd each month until the end of the year, or 2 million bpd in total, and will meet again on September 1 to review current market conditions.

No decision has been taken regarding production quotas for 2022, but the producer group intends to eventually restore production to pre-pandemic levels.