OPEC increases forecast for Azerbaijan's daily oil production for 2020-2021

12 November 2020 12:00 (UTC+04:00)

By Ayya Lmahamad

Organization of Petroleum Exporting Countries (OPEC) has increased its forecast for average daily oil production in Azerbaijan for 2020-2021.

OPEC Monthly Oil Market reported in its November issue, that the average daily oil production of oil and other hydrocarbons in Azerbaijan in 2020 will be at 0.73 million barrels, with an increase by 0.01 million barrels compared to October's forecast.

Moreover, an average daily oil production in 2021 is projected to be 0.72 million barrels, which is by 0.01 million barrels more than the previous forecast from October.

Earlier this year, it was reported that OPEC has increased the assessment of confirmed gas reserves in Azerbaijan to 1.718 billion cubic meters in 2019, which is by 19.7 percent more than in 2018. In addition, according to OPEC's report, proven crude oil reserves in Azerbaijan are estimated at 7.000 million barrels in 2019, production at 678,500 b/d, while exports of crude oil and petroleum products amounted to 559,300 b/d.

It should be noted that in April 2020, OPEC and non-OPEC countries entered into an agreement on the reduction of daily oil production by 9.7 million barrels in May-June and 164,000 barrels for Azerbaijan.

On July 31, the first phase of the OPEC+ agreement of April 12 to reduce daily oil production by 9.7 million barrels was completed.

In the second phase of the agreement, covering the period from August 1 to December 31, the daily production of crude oil in OPEC+ countries will be reduced by 7.7 million barrels, which is 18 percent less than in October 2018.

Earlier it was reported that Azerbaijan has fulfilled its obligations under OPEC+ agreement in October. In October, the daily oil production, including condensate in the country amounted o 675,200 barrels. Out of total daily oil production, crude oil accounts for 587,000 barrels and condensate for 88,500 barrels. According to the “Declaration on Cooperation”, Azerbaijan, which produced 718,000 barrels of crude oil per day in October 2018, should maintain its production of crude oil at 587,000 barrels during the period of August-December, reducing by 131,000 barrels per day. Thus, in October, Azerbaijan fulfilled its obligations under OPEC+ agreement with an average daily production of 587,000 barrels.

---

Ayya Lmahamad is AzerNews’ staff journalist, follow her on Twitter: @AyyaLmahamad

Follow us on Twitter @AzerNewsAz