By Leman Mammadova
Russia's seventh largest oil and gas producer Russneft has announced its expected oil production volume in Azerbaijan for the current year.
The company expects its oil production in the country to be at the level of 500,000 tons in 2019.
“We produced approximately the same amount of oil in Azerbaijan a year earlier,” said the company.
Russneft is also interested in participating in new projects in Azerbaijan. The interests of RussNeft in projects in Azerbaijan are represented through the Global Energy Azerbaijan (GEA), which operates in 5 contract territories, namely Absheron, Binagadi, Neftchala, Shirvan and Garasu.
Russneft possesses a 100 percent stake in GEA since 2014. Through its subsidiaries and joint ventures, GEA is involved in the projects engaged in the development and production of oil in Azerbaijan on the basis of production sharing agreements (PSA) signed with SOCAR.
Russneft owns a share in a number of off-shore producer companies, including Absheron Operating Company Limited (which develops Zikh-Govsani field ), Garasu Operating Company (which engages in exploration and development of the Mishovdagh and Kamaladdin oil fields), Kura Valley Operating Company (Padar block), Neftchala Investment Limited (Neftchala, Khilli, Durovdag-Babazanan block of fields), Shirvan Operating Company (Kurovdag field).
In 2016, Russneft reduced the share in the Padar block to 20 percent.
Earlier, Mikhail Sukhoparov, Vice President for Geology and Development of Russneft, said that the company plans to increase oil production by 3 percent to 7.8 million tons.
The major part of oil production in Azerbaijan accounts for the Azeri-Chirag-Gunashli (ACG) block of oil and gas fields. The average daily oil production in Azerbaijan amounted to 792,600 barrels in 2018.
Oil production in Azerbaijan will be 776,000 barrels per day as part of the OPEC+ deal extension.
The world’s major oil producers reached a deal to reduce oil production by 1.2 million barrels per day at the 5th OPEC and non-OPEC Ministerial Meeting in Vienna on December 7, 2018. The agreement came into force on January 1, 2019.
Azerbaijan also supported the decision to reduce oil production and joined the agreement to support the process of world oil market regulation. As part of the agreement, Azerbaijan reduced daily production by 20,000 barrels to 776,000 barrels.
The average daily production in Azerbaijan in January-June 2019 amounted to 771,000 barrels. The daily volume of oil production in Azerbaijan in June 2019 amounted to 768,000 barrels against 776,000 barrels per day in May this year.