Saudi Arabian Energy Minister: Khalid al-Falih dusccus oil output cuts extensions with Venezuela

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As the Organization of Petroleum Exporting Countries as well non-OPEC producers including Russia, have established a deal to extend the said OPEC deal to cut oil supply per day up until March of 2018, to balance the market; Khalid al-Falih, Saudi Arabian Energy Minister had a discussion with Venezuelan and Kazakhstani Energy Ministers about the possible extension of the OPEC deal.

In accordance to this, an extension of at least three months beyond the agreed due in March is now being conversed before the next OPEC meeting in November begins.

Khalid al-Falih said in a statement on his meeting with Kanat Bozumbayev, Kazakhstan’s Energy Minister that both countries agreed that the alternative to prolong the OPEC deal beyond the first quarter of 2018, would be considered in due time as market essentials may dictate.

In addition, according to a Kazakhstani official last week; the non-OPEC member: Kazakhstan is now aiming for a stand-alone deal with the organization, with regards on limiting its crude production due to a need to activate supply at its Kashagan field. Kazakhstan also claimed that it needs to regulate the terms of the deal as Kazakhstan is expected to increase supply later this year with the help of Kashagan field.

In relevance to this, Khalid al-Falih said in spite of of the gradual ramp up of the Kasahagan field that Kazakhstan was able, through reducing output in other fields in August, to achieve more than full conventionality with its supply cut target; and that a similar production level is also anticipated for the month of September.



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