IEA evaluates Azerbaijan’s OPEC+ compliance

22 August 2021 12:15 (UTC+04:00)

By Trend

Azerbaijan’s oil supply (excluding condensates) stood at 0.61 million barrels per day in July 2021, unchanged from June 2021, Trend reports with reference to the International Energy Agency (IEA).

The country’s compliance with OPEC+ agreement in July 2021 was 114 percent, according to the IEA report.

The target for the July, August and September 2021 is 0.62, 0.63 and 0.63 million barrels per day, respectively.

At the 19th meeting of the ministers of the member countries of the Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC countries, Azerbaijan supported the decision to extend the "Declaration of Cooperation" until the end of 2022, which implies an increase in daily crude oil production by 400 thousand barrels every month in August - December 2021 and a partial adjustment of the base oil production level from May next year.

The new "Declaration on Cooperation" envisages a corresponding increase in daily oil production in Azerbaijan from August to the end of the year, as well as a corresponding decrease in obligations for reductions. From May 2022 until the end of the year, the calculation of Azerbaijan's oil production obligations will continue on the basis of the existing base, that is, the daily crude oil production of 718 thousand barrels per day in October 2018 in our country will remain the basis for determining the production level next year.

Azerbaijan supported this new OPEC + decision, which will help balance the world oil market. The new agreement calls for a reduction from 5.8 million barrels in OPEC + countries to 2 million barrels by the end of 2021.

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