Oil Chronicles
Oil Chronicles. June 2024
June

June 2, at the OPEC+ meeting, held for the first time in Riyadh rather than Vienna, participants agreed to extend the voluntary oil production cuts until the end of 2025.
The countries decided to prolong the additional voluntary reductions of 1.65 mln barrels per day, initially announced in April 2023, until the end of December 2025.
The deadline for evaluating the alliance's production capacities by three independent sources—IHS Market, Rystad Energy, and Wood Mackenzie—was extended until November 2025. These evaluations will determine quotas for 2026.
Three countries—Russia, Iraq, and Kazakhstan—that did not fully meet their voluntary production cut commitments have pledged to present updated compensation schedules for overproduction to OPEC by the end of June.
June 5, the Ministry of Energy of Kazakhstan and KazMunayGas signed a contract for the exploration and production of hydrocarbons for the complex Karajar project in the Aktobe region. The following day, on June 6, a contract was signed to transfer 100% of the subsoil use rights under the exploration and production contract for the Karajar project from KazMunayGas to KazakhTurkMunay LLP. KazMunayGas owns 100% of KazakhTurkMunay LLP.
In 2023, amendments were made to the Tax Code, providing fiscal preferences for complex oil and gas projects to stimulate investment in the oil and gas sector. These include exemptions from the Mineral Extraction Tax, Excess Profits Tax, and historical cost recovery payment through the application of an alternative subsoil use tax (ASUT); exemptions from rent tax and property tax; and a 50% increase in the maximum depreciation rate for expenses incurred before and after the start of production.
Nurlan Zhakupov, Chairman of the Board of Samruk-Kazyna Fund, met with Vitol Financial Director Jeffrey Dellapina. According to the meeting’s report, “the parties discussed ongoing cooperation and potential future projects in Kazakhstan’s energy sector.”
The World Petroleum Congress (WPC Energy) will be held in Astana in 2028. The decision was made during a visit by a delegation from the Kazakh National Committee of WPC Energy, represented by the KazEnergy Association, to London, where the headquarters of the World Petroleum Council are located. KazEnergy Chairman Magzum Mirzagaliyev led the delegation.
The association’s press service emphasized that the congress will be financed through international sponsorships, delegate fees, and exhibition space sales. Any potential profits from the event will be directed towards charitable causes, including the creation of an Oil Museum in Atyrau or the establishment of special educational grants for Kazakhstani students in technical universities with industry-relevant profiles.
On June 7, at the St. Petersburg International Economic Forum, Gazprom signed contracts with Kazakhstan to transit gas to Uzbekistan and Kyrgyzstan. Additionally, Gazprom Chairman Alexey Miller signed an action plan with Kazakhstan's First Deputy Prime Minister Roman Sklyar to increase the supply of Russian gas to Uzbekistan via the Central Asia-Center (CAC) - 4 pipeline through Kazakhstan.