EIA reveals forecasts on Azerbaijan’s oil output

Azerbaijan’s oil production will average 0.87 million barrels per day in 2016 and 0.86 million barrels per day in 2017, according to the U.S. Energy Information Administration’s (EIA) Short-Term Energy Outlook.

In the first two quarters of 2016, Azerbaijan’s oil production will amount to 0.88 million barrels per day, while in the third and fourth quarters of the year the production will average 0.87 million barrels per day.

In 2017, EIA forecasts the highest Azerbaijan’s oil production to be observed in the first quarter – at 0.87 million barrels per day. In the second and third quarters of the next year the country’s production will average 0.86 million barrels per day, in the fourth – 0.85 million barrels per day, according to the EIA’s forecasts.

The main oil output in Azerbaijan comes from Azeri-Chirag-Guneshli field. This offshore block produces Azeri Light oil with 0.15 percent sulfur and 35 degrees API.

The contract for the Azeri-Chirag-Guneshli development, with proven reserve of nearly 1 billion tons of oil, was signed in 1994. Shares in the contract are as follow: BP (operator) - 35.78 percent, Chevron - 11.27 percent, Inpex - 10.96 percent, AzACG - 11.65 percent, Statoil - 8.56 percent, Exxon - 8 percent, TPAO - 6.75 percent, Itochu - 4.3 percent and ONGC - 2.72 percent.

Azerbaijan’s proved oil reserves amounted to 7 billion barrels at the end of 2014, according to BP’s Statistical Review. BP and its partners produced 16 million tons during the first half of 2015 on ACG block, which is the same as in the first half of 2014.

The prices for AZERI LT oil produced at Azeri-Chirag-Guneshli block of oil and gas fields on the basis of CIF in the Italian port of Augusta was $31.92 per barrel on January 12, or $0.89 less compared to January 11.

AZERI Light FOB Ceyhan oil price was $30.89 per barrel or $0.85 per barrel less than the previous price.

Azerbaijan also exports URALS oil from Russia’s Black Sea port of Novorossiysk. The oil is delivered there via the Baku-Novorossiysk pipeline. The price for URALS-NOVO was $26.27 per barrel, or $1.03 less than the previous price.

The price for a barrel of Brent Dated, produced from the North Sea, stood at $29.25 per barrel Jan. 12 or $0.8 less than the previous price.

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