By Ayya Lmahamad
Azerbaijan’s state oil company SOCAR will reduce oil production by 17,000 barrels per day up to 100,000 barrels per day in May-June 2020 within fulfillment of obligations on OPEC+, the company told local media reported on April 30.
"To fulfill Azerbaijan's obligations on oil production reduction within the framework of OPEC+, the Ministry of Energy has proposed an acceptable distribution of quotas on temporary reduction between oil producing companies operating in the country. The function of ensuring implementation of this proposal on the instructions of the Cabinet of Ministers is assigned to SOCAR," the company said.
According to the State Oil Company, in May-June 2020, SOCAR will reduce production by 17,000 bpd, up to 100,000 barrels, excluding condensate, Azerbaijan International Operating Company will reduce production by 76,000 barrels, from Azeri- Chirag- Gunashli block, while the rest of the operating companies - by 3,000 barrels.
As noted earlier, in April 2020, OPEC+ countries entered into agreement to reduce oil production. The baseline from which production should decline is oil production from October 2018, except Saudi Arabia and Russia for which the baseline will be 11 million bpd. The agreement will be valid until April 30,2022.
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