Country increases oil, gas exports

20 May 2019 11:40 (UTC+04:00)

By Leman Mammadova

In January-April 2019, Azerbaijan’s export of oil products from crude oil and bituminous minerals made up 80.1 percent of the country's total exports.

Meanwhile, natural gas accounted for 9 percent and oil products - for 2.52 percent, according to the State Customs Service.

The country exported 12 million tons of crude oil and bituminous minerals in January-April 2019. The cost of oil and oil products exported in the first four months was $5.7 billion.

In the same period of the previous year, 9 million tons of crude oil worth $4.6 billion was exported from the country.

Meanwhile, in January-April this year, Azerbaijan exported 4.4 billion cubic meters of natural gas, worth $638 million.

During the same period last year, 1.9 billion cubic meters of natural gas worth $343 million was exported from the country.

Azerbaijan has also increased the volume of electricity exports. The country exported 1.5 billion kWh of electricity in January-April. The cost of exported electricity amounted to $45 million.

In the same period last year, Azerbaijan exported 988 million kWh of electricity, the cost of which was $47 million.

It should be noted that Azerbaijan exported 7.9 billion cubic meters of natural gas and 29.5 million tons of oil and oil products in 2018.

Last year, the country's export of crude oil and crude oil products from bituminous minerals amounted to 29.5 million tons. The value of crude oil produced exceeded $15.7 billion.

At the same time, Azerbaijan exported over 7.9 billion cubic meters of natural gas in 2018. The value of the exported natural gas exceeded $1.5 billion.

Currently, an average of 110,000 tons of oil and 94 million cubic meters of gas are extracted per day in Azerbaijan from offshore and onshore fields, including the Shah Deniz, Azeri-Chirag-Gunashli (ACG) and Umid fields, which are jointly operated with foreign companies.

ACG is the largest oil and gas field in the Caspian Sea, covering more than 432 square kilometers. A contract for the development of ACG block of oil and gas fields was signed in 1994 for 30 years. Oil extraction from the field began in November 1997.

Proven oil reserves of ACG block of oil and gas fields are estimated at 1.2 billion tons, while gas reserves make 350 billion cubic meters.

On September 14, 2017, a modified and redeveloped agreement was signed on joint development and shared distribution of production from the Azeri, Chirag fields and the deepwater part of the Gunashli field (ACG). The new agreement provides for the development of the field until 2050.

The oil produced from the ACG field is exported to the world markets through the Sangachal Terminal, mainly through the Baku-Tbilisi-Ceyhan oil pipeline and the West Stream Pipeline to Supsa.

Baku-Tbilisi-Ceyhan, which is considered to be the main artery of energy export in the region, has played an important role in the extraction of the Caspian Sea's rich energy resources and bringing them to the world markets.

Azerbaijan’s oil is exported from the country not only in raw form, but also in the form of oil products.

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Leman Mammadova is AzerNews’ staff journalist, follow her on Twitter: @leman_888

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