OPEC upgrades forecast for Azerbaijan's liquids production for 2021

18 December 2020 12:53 (UTC+04:00)

By Ayya Lmahamad

Organization of Petroleum Exporting Countries (OPEC) has increased its forecast for Azerbaijan’s liquids production for 2021.

OPEC Monthly Oil Market reported in its December issue, that the liquids production in the country is expected to increase by 0.01 million barrels to 0.74 million barrels.

In the meantime, liquids production is forecast to decline by 0.06 million barrels to average of 0.73 million barrels in 2020.

Moreover, according to the report, Azerbaijan’s preliminary liquids output was an average of 0.70 million barrels in October.  

Azerbaijan has reduced liquids production from first quarter of the year by 0.06 million barrels to average 0.73 million barrels in second quarter, and further reduction by 0.04 million barrels to average 0.69 million barrels in third quarter. In addition, for fourth quarter of the year production is forecast to increase slightly to 0.70 million barrels.

Furthermore, it was reported that production of condensate has been steady at 1.15 million barrels in October-November 2020. In the meantime, crude oil production was flat at 0.59 million barrels during the period of August to November.

Additionally, it was noted that production of condensate has increased since the start-up of production from the Shah-Deniz gas-condensate field and output is expected to rise as the Shah-Deniz partners plan to commission the field’s deepwater East South flank in the first half of 2021.

In April 2020, OPEC and non-OPEC countries entered into agreement on 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.

Additionally, at the 12th Ministerial Meeting of OPEC and non-OPEC countries, it was decided to reduce the daily production of crude oil by 7.2 million barrels in January 2021 and to regulate increase in daily production provided, that it does not exceed 0.5 million barrels, through monthly OPEC+ Ministerial Meetings. Azerbaijan’s commitment, according to the new “Declaration on Cooperation”, will be 123,000 barrels in January 2021. Thus, in January, Azerbaijan must increase daily oil production by 8,000 barrels and keep production at the level of 595,000 barrels.

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

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