Kazakhstan, a non-OPEC oil producer part of the OPEC+ agreement, will consider building an oil pipeline in the Caspian Sea, Russian news agency Interfax reported on Thursday, quoting Kazakhstan's Energy Ministry.
The country is also considering the construction of another oil pipeline from Atyrau to Kuryk in the medium term, the Kazakh Energy Ministry said in response to questions.
"The possibility of constructing an oil pipeline across the Caspian Sea floor will also be studied," the ministry added, as carried by Interfax.
Kazakhstan could also boost oil trans-Caspian oil shipments to match the capacity of the Aktau port, the energy ministry added.
Kazakhstan has boosted its crude oil exports in the past year and expects to keep boosting exports in 2024, too.
Most of Kazakhstan's crude oil exports are currently being handled by the network of the Caspian Pipeline Consortium (CPC). The CPC pipeline runs from the Caspian coast in northwest Kazakhstan to the Novorossiysk port on Russia's Black Sea coast and carries 80% of Kazakh crude exports.
So far this year, Kazakhstan has exceeded its oil production quota under the OPEC+ deal. The country has repeatedly said that it is committed to achieving compliance and compensating for previous overproduction.
Kazakhstan exceeded by 131,000 barrels per day (bpd) its OPEC+ quota in March, due to the weather and heating season requirements, the country's Energy Ministry said this weekend, pledging that the non-OPEC producer will look to compensate in the coming months for its overproduction.
"Kazakhstan will continue to make every effort to comply with its obligations and compensate for the 1st quarter overproduction," the Kazakh Energy Ministry said in a statement.
Early this month, the Joint Ministerial Monitoring Committee (JMMC), the OPEC+ panel that monitors oil market developments and the group's production cuts, didn't recommend any changes to output policy but noted that compliance with the cuts needs to improve.
By Charles Kennedy for Oilprice.com
Charles is a writer for Oilprice.com More