Azerbaijan, Saudi Arabia review energy cooperation

6 December 2018 17:48 (UTC+04:00)

By Leman Mammadova

Azerbaijan’s Energy Minister Parviz Shahbazov is on a visit to Vienna, Austria on December 4-7 within the 12th meeting of the OPEC-Non-OPEC Joint Ministerial Monitoring Committee.

Shahbazov met with Khalid bin Abdulaziz Al-Falih, Minister of Energy, Industry and Mineral Resources of Saudi Arabia.

The meeting focused on the factors that have led to changes in oil prices in recent years, expectations in short and long-term prospects, the condition and demand on the global oil market.

Ministers exchanged views on the proposal to limit the production of price stability and balance.

It was noted that the continuation of cooperation between OPEC and non-OPEC countries in 2019 is important in terms of oil market regulation.

The sides touched upon the issues of cooperation with Azerbaijan within the framework of the Declaration of Cooperation. The opportunities for expanding energy cooperation between Saudi Arabia and Azerbaijan were also reviewed.

Saudi Arabia is one of the first countries that signed an energy deal with Azerbaijan. Saudi Arabia participated in the Contract of the Century signed in 1994 in Baku and its Delta-Hess Company had a 2.72 percent share in the contract.

In 2012, SOCAR and Soroof International Company signed a Memorandum of Understanding on Oil and Gas Industry in Azerbaijan.

As of January 2018, during the visit of Energy Minister Parviz Shahbazov to Saudi Arabia, an agreement was reached to establish a working group between the relevant ministries of the two countries for the development of energy cooperation between Azerbaijan and Saudi Arabia.

At that time, it was stated that representative office of Saudi Aramco in Azerbaijan will start operating in the near future.

Saudi Arabia's state-owned and private companies invest $ 368 million in Azerbaijan's economy.

It should be noted that at the meeting in OPEC + format, the participants discussed the reduction in production by 1.3 million barrels per day.

Representatives attending the meeting stated that they are waiting for Russia's position, which is a non-OPEC country of cartel. Russian Energy Minister Alexander Novak has returned to Moscow for consultations. He will officially present Moscow's position at the December 7 meeting of OPEC and non-OPEC ministers.

OPEC is committed to achieving and maintaining stability and balance in the market along with ten other non-OPEC member countries through OPEC and the "Partnership Declaration".

Azerbaijan has been closely involved in the stabilization of the world oil market and price. Azerbaijan supports the idea of reducing oil production within OPEC+.


Follow us on Twitter @AzerNewsAz