OPEC forecast for oil production in Azerbaijan remains unchanged

10 August 2016 18:00 (UTC+04:00)

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OPEC expects Azerbaijan’s oil supply to average 0.85 million barrels per day (bpd) in 2016, which is 10,000 bpd less than the output in 2015, the cartel said in its monthly oil market report, published Aug. 10.

The forecast remained unchanged as compared to the previous monthly oil market report.

Azerbaijan’s oil output decreased by 10,000 bpd to average 0.86 million bpd in June, following a decline of 10,000 bpd in May, according to OPEC.

Nevertheless, total oil production (crude plus natural gas liquids) was pegged at 0.87 million bpd in 1H16, the same as 1H15, but higher by 20,000 bpd than in 2H15.

OPEC also expects decline in oil production in Azerbaijan by 40,000 bpd in 2017 due to a lack of new project start-ups.

The main oil output in Azerbaijan currently comes from the Azeri-Chirag-Guneshli field. This offshore block produces Azeri Light oil with 0.15-percent sulfur content and 35 degrees API.

The contract for the Azeri-Chirag-Guneshli’s development, with proven reserve of nearly 1 billion tons of oil, was signed in 1994.

Azerbaijan's proven oil reserves amounted to 7 billion barrels at the end of 2015, according to BP's Statistical Review.

Azerbaijan produced 41.69 million tons of oil and gas condensate in 2015, or 0.8 percent less than in 2014, according to Azerbaijan’s State Statistics Committee.

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