By Ayya Lmahamad
Azerbaijan fulfilled by 98 percent its obligations to reduce oil production within the framework of OPEC+ in the first half of May, Ministry of Energy reported on May 15.
"Azerbaijan has directed all opportunities of the oil sector to fulfill its obligations, thus ensuring equal participation of foreign and local oil producers in this process. The level of fulfillment of Azerbaijan's obligations in the first decade of May is 98 percent. Our main goal is to contribute to the oil market by implementing all necessary measures to reduce daily production from May to June by 164.000 barrels," the minister said.
Shahbazov said that Azerbaijan provides necessary support to accelerate the restoration of stability and balance in the world oil market.
Moreover, he noted that implementation of the historic agreement reached in April also requires high sensitivity and decisive steps on the part of OPEC and OPEC+ member states.
“Commitment to the obligations of the OPEC+ countries, as well as the positions of Saudi Arabia, UAE and Kuwait to reduce production in additional volumes are crucial to regulating the oil market," he said.
As of May 1, Azerbaijan, which for the first time undertook commitments in large volumes in order to stabilize the global oil market, started the process of reducing daily oil production in accordance with the established quota.
With the daily crude oil production of 718.000 barrels in October 2018, the country will reduce production from 164.000 barrels from May to June under the new agreement.
During this period Azerbaijan must maintain daily production of crude oil in the amount of 554.000 barrels.
Azerbaijan's obligations in July-December amounted to 131.000 barrels, and 98 .000 barrels from January 2021 to April 2022. Under the quotas, daily production of crude oil in Azerbaijan must not exceed 587.000 barrels from July 1 till late 2020, and 620.000 barrels from January 2021 to April 2022.
State Oil Company of Azerbaijan, Azerbaijan International Operating Company, as well as operating companies and joint ventures producing oil on land fields are involved in the process of reducing oil production in Azerbaijan.
As reported earlier, in April 2020, OPEC and non-OPEC countries entered into agreement on reduction of daily oil production in three stages from May 1,2020 to April 2022. In the first stage (May-June 2020) the decrease within the OPEC+ framework will amount to 9.7 million bpd.
Follow us on Twitter @AzerNewsAz