By Leman Mammadova
Azerbaijan, rich in oil and gas resources, ensures its energy security as well as supplies local energy resources to the world markets.
The country’s natural gas exports increased by 28 percent from 8 billion cubic meters in 2017 to 10.3 billion cubic meters in 2018, according to the OPEC Annual Statistical Bulletin.
Natural gas production in Azerbaijan increased from 16.9 billion cubic meters in 2017 to 17.9 billion cubic meters in 2018, showing an increase of 5.8 percent year-on-year.
As the report says, Azerbaijan’s proven natural gas reserves in 2018 amounted to 1.2 trillion cubic meters, which is similar to the figures for 2017.
Meanwhile, the country’s demand for natural gas increased by 27.8 percent year-on-year, from 9.4 billion cubic meters in 2017 to 12 billion cubic meters in 2018.
The share of natural gas in total exports of Azerbaijan was 7.71 percent in 2018.
It should be noted that in January-April this year, Azerbaijan exported 4.4 billion cubic meters of natural gas worth $638 million.
According to the Annual Statistical Bulletin of OPEC, Azerbaijan’s proven natural gas reserves make almost 1.3 trillion cubic meters.
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 ACG participating interests are as follows: BP - 30.37 percent; AzACG (SOCAR) - 25 percent; Chevron - 9.57 percent; INPEX - 9.31 percent; Statoil - 7.27 percent; ExxonMobil - 6.79 percent; TP - 5.73 percent; ITOCHU - 3.65 percent; ONGC Videsh Limited (OVL) - 2.31 percent.
Leman Mammadova is AzerNews’ staff journalist, follow her on Twitter: @leman_888
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