OPEC forecasts stable oil production in Azerbaijan

13 August 2020 16:20 (UTC+04:00)

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By Ayya Lmahamad

OPEC has forecasted stable average daily oil production in Azerbaijan for 2020 and 2021.

In its August issue, OPEC Monthly Oil Market reported that the average daily oil production of oil and other hydrocarbons in Azerbaijan will be at 0.72 million barrels.

Moreover, it is forecasted that the average daily oil production in 2020 will be 0.72 million barrels.

According to the report, the country’s daily crude oil production declined by 111,000 barrels in May, amounting to 0.57 million barrels, while in June, the production declined by 20,000 barrels to average 0.55 million barrels.

Furthermore, the final liquids output in May- June shows month on month declines of 0.11 million and 0.02 million barrels respectively.

Likewise, preliminary crude daily oil production in July remained unchanged month on month, amounting average production of 0.55 million barrels.

Earlier it was reported that the Organization of Petroleum Exporting Countries (OPEC) has increased the assessment of confirmed gas reserves in Azerbaijan to 1.718 billion cubic meters in 2019, which is by 19.7 percent more than in 2018.

Moreover, according to the report, proven crude oil reserves in Azerbaijan are estimated at 7.000 million barrels in 2019, production 678,500 b/d, as well as exports of crude oil and petroleum products amounted to 559,300 b/d.

It should be noted that in April 2020, OPEC and non-OPEC countries entered into agreement on reduction of daily oil production by 9.7 million barrels in May-June and 164,000 barrels for Azerbaijan.

Thus, according to the “Declaration on Cooperation”, Azerbaijan produced 718,000 barrels of crude oil per day in October 2018, while in May-July 2020, the country must maintain the average daily production of crude oil at 554,000 barrels.

At the meeting of OPEC and OPEC+ countries on June 6, it was decided to extend the quota until the end of July.

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