Kazakhstan continues to massively exceed Opec+ target

: Crude oil
25/04/08

Kazakhstan does not expect any major reduction in crude output in April after massively exceeding its Opec+ target in March.

Kazakhstan's crude production rose by 43,000 b/d to a record 1.79mn b/d in March, deputy energy minister Alibek Zhamauov said today, putting it 322,000 b/d above its Opec+ target of 1.468mn b/d. He added that Kazakhstan has not yet been able to agree with international oil companies operating the country's largest fields about reducing output.

Kazakh production has surged following a major output increase at the Chevron-led Tengiz field in January — part of the field's future growth project (FGP). Zhamauov said that there has not yet been any agreement on reducing Tengiz output as it "is a very challenging action, especially for Chevron [which] spent $50bn on the FGP project [and] told us it's not possible for them to reduce output".

Tengiz production hit 901,000 b/d in March, Zhamauov said, compared to previous levels of 600,000-660,000 b/d. Kazakhstan's second-largest oil field, Kashagan, which is also operated by international firms, produced 387,000 b/d in March, he said. Neither are expected to reduce output in April, he added.

Zhamauov said that Kazakhstan will try to reduce output from smaller fields operated by domestic producers such as state-controlled Kazmunaigaz. But any decrease from these fields will not be enough to offset the rise from Tengiz.

Kazakhstan remains one of the Opec+ alliance's largest overproducers, despite repeatedly pledging to compensate for exceeding its target since January 2024. This has frustrated other Opec+ members, which have largely stuck to their production targets.

Kazakhstan's compensation plan states its March production should have been 1.43mn b/d.

Kazakhstan's continued overproduction is understood to have contributed towards the decision by Opec+ members to start increasing output from April.

Zhamauov said that Kazakhstan's crude production and exports have not been impacted by the closure of two single-point moorings (SPMs) at the Caspian Pipeline Consortium (CPC) terminal on Russia's Black Sea coast late last month.

Kazakhstan's crude exports were 1.41mn b/d in March, up from 1.39mn b/d in February, while refinery runs were 370,000 b/d, up by 22,000 b/d, Zhamauov said. Condensate production was 290,000 b/d, compared to 278,000 b/d in February. This brings Kazakhstan's total liquids production in March to 2.08mn b/d.

By Aydin Calik

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25/04/23

Tariffs will cut profits $100mn-$200mn: Baker Hughes

New York, 23 April (Argus) — Oilfield services giant Baker Hughes expects a cut in its annual profit of as much as $200mn from tariffs, if current levels applied under President Donald Trump's 90-day pause stay in place for the rest of the year. That hit to profits does not include secondary effects, such as the impact of Trump's trade wars on slower global economic growth, as well as a renewed bout of weakness in oil prices. While the company is taking steps to mitigate tariff impacts, its "strong weighting" to international markets helps reduce its overall financial exposure, according to chief executive officer Lorenzo Simonelli. Increased oil price volatility due to tariffs , as well as the return of Opec+ barrels to the market, have resulted in a softening outlook for the market. As such, Baker Hughes now expects global upstream spending will be "down by high single digits" this year. The company forecasts a low-double digit decline in North America spending by its clients, and a mid-to-high single digit drop internationally. "A sustained move lower in oil prices or worsening tariffs would introduce further downside risk to this outlook," said Simonelli. "The prospects of an oversupplied oil market, rising tariffs, uncertainty in Mexico and activity weakness in Saudi Arabia are collectively constraining international upstream spending levels." The company has identified three areas of tariff exposure within its industrial and energy technology division, including volumes exported to China, critical equipment supplies from its facilities in Italy, and an expected modest impact from steel and aluminum tariffs as well as US-China trade activity. Mitigation efforts include exploring domestic procurement alternatives to reduce input costs and improving its global manufacturing footprint. In relation to its oilfield services and equipment segment, Baker Hughes has been working to boost domestic sourcing and is working with customers to recover some costs. Elsewhere, the repeal of an US LNG permitting moratorium under the Trump administration has resulted in higher orders. Baker Hughes has booked about $1.7bn in LNG orders in the US over the past two quarters, and several LNG customers in the Gulf Coast have signaled plans to expand capacity beyond 2030. Profit of $402mn in the first quarter was down from $455mn in the year-earlier period. Revenue held steady at about $6.4bn. By Stephen Cunningham Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

India, Saudi Arabia to establish two Indian refineries

25/04/23

India, Saudi Arabia to establish two Indian refineries

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FERC commissioner Phillips resigns from agency

25/04/22

FERC commissioner Phillips resigns from agency

Washington, 22 April (Argus) — Democratic commissioner Willie Phillips has resigned from the US Federal Energy Regulatory Commission (FERC) after serving more than three years at an agency responsible for permitting natural gas infrastructure and regulating wholesale power markets. Phillips' departure will clear the way for President Donald Trump to nominate a replacement at FERC, who once confirmed by the US Senate would provide Republicans a 3-2 majority for the first time since 2021. Phillips, whose term was not set to expire until June 2026, had a reputation for negotiating bipartisan deals on contentious orders involving pipelines and power market issues in the two years he served as FERC's chairman under former president Joe Biden. Phillips has yet to release a statement explaining his abrupt resignation. But Trump has already fired Democratic commissioners and board members at other agencies that, like FERC, are structured as independent from the White House. Two of the fired Democrats, who were serving at the US Federal Trade Commission, have filed a lawsuit that argues their removal was unlawful under a 1935 decision by the US Supreme Court. The White House did not respond to a question on whether it had pressured Phillips to resign. FERC chairman Mark Christie, a Republican, offered praise for Phillips as a "dedicated and selfless public servant" who sought to "find common ground and get things done to serve the public interest". Christie for months has been downplaying the threats to FERC's independence caused by Trump's executive order that asserts sweeping control over FERC's agenda. Energy companies have come to depend on FERC in serving as independent arbiter in disputes over pipeline tariffs and electricity markets, without the consideration of political preferences of the White House. Former FERC chairman Neil Chatterjee, a Republican who served in Trump's first term, said in a social media post it was "disappointing" to see Phillips pushed out after he "played it straight" in his work at the agency. As chairman, Phillips was able to authorize a "massive LNG project" — the 28mn t/yr CP2 project — at a time when Biden had sought to pause LNG licensing, Chatterjee said. Separately, Paul Atkins was sworn in as the chairman of the US Securities and Exchange Commission (SEC) on 21 April, after the US Senate voted 52-44 earlier this month in favor of his confirmation. Atkins was previously the chief executive of financial consulting firm Patomak Global Partners and served as an SEC commissioner from 2002-08. Republicans will now have a 3-1 majority at the SEC. By Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Halliburton working to mitigate tariff impact: Update

25/04/22

Halliburton working to mitigate tariff impact: Update

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Tariff ‘shock’ prompts IMF to cut growth outlook

25/04/22

Tariff ‘shock’ prompts IMF to cut growth outlook

Washington, 22 April (Argus) — Global economic growth is expected to be significantly lower in 2025-26 than previously anticipated because of the steep tariffs President Donald Trump is pursuing for most imports and the uncertainty his policies are generating, the IMF said. The IMF, in its latest World Economic Outlook released today, forecasts the global economy will grow by 2.8pc in 2025 and 3pc in 2026. That compares with the 3.3pc/yr growth for 2025-26 that the IMF was expecting just three months ago. Today's forecast is based on the tariffs that Trump had in place as of 4 April, before he paused steep tariffs on most countries and escalated tarrifs on China. These barriers had pushed up the effective US tariff rate to levels "not seen in a century", the IMF said. While Trump has altered his tariff levels repeatedly, he has imposed an across-the-board 10pc tariff on most imports, a 25pc tariff on steel and aluminum, a 25pc tariff on some imports from Canada and Mexico, and a 145pc tariff on most imports from China. "This on its own is a major negative shock to growth," the IMF said. "The unpredictability with which these measures have been unfolding also has a negative impact on economic activity and the outlook." IMF forecasts are used by many economists to model oil demand projections. The US and its closest trading partners appear to be among those hardest hit by tariffs and corresponding trade countermeasures. The IMF's baseline scenario forecasts US growth at 1.8pc this year, a decrease of 0.9 percentage points from the forecast the IMF released in January, reflecting higher policy uncertainty, trade tensions and softer demand outlook. Mexico's economy is now projected to shrink by 0.3pc in 2025, rather than grow by 1.4pc, while Canada's growth is forecast at 1.4pc in 2025, down from 2pc. The release of the IMF report comes as Trump has given no indications of a shift in thinking on tariffs, which he says are generating billions of dollars for the US and will prompt companies to relocate their manufacturing capacity to the US. "THE BUSINESSMEN WHO CRITICIZE TARIFFS ARE BAD AT BUSINESS, BUT REALLY BAD AT POLITICS. THEY DON'T UNDERSTAND OR REALIZE THAT I AM THE GREATEST FRIEND THAT AMERICAN CAPITALISM HAS EVER HAD!" Trump wrote on social media on 20 April. The next day, major stock markets indexes declined by more than 2pc, continuing their crash from when Trump began announcing his tariff policies. Trump on 21 April escalated his attacks against US Federal Reserve chair Jerome Powell for failing to lower interest rates as Trump has demanded. There could be a "SLOWING of the economy unless Mr. Too Late" — his nickname for Powell — "a major loser, lowers interest rates, NOW," Trump wrote. The IMF also ratcheted down its expectations for the Chinese economy. China's economy is expected to grow by 4pc/yr in 2025-26, down from the 4.6 and 4.5pc, respectively, the IMF was anticipating in January. The euro area is forecast to grow by 0.8pc in 2025 and 1.2pc in 2026, a decrease of 0.2 percentage points from the IMF's previous forecast. By Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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