EIA forecasts stable oil production in Azerbaijan for 2021-22

17 February 2021 12:17 (UTC+04:00)

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By Ayya Lmahamad

The U.S. Energy Information Administration has forecasted a stable level of daily oil production for Azerbaijan for 2021-2022.

İn its February report, the agency forecasted 730,000 barrels of daily oil production in 2021, and 780,000 barrels of daily oil production in 2022, same as in the report for January.

Moreover, according to the EIA’s Short-Term Energy Outlook report, average daily oil production in Azerbaijan is projected to be 700,000 barrels in the first quarter of 2021.

Furthermore, average daily oil production was at the level of 710,000 barrels in 2020. Thus, average daily oil production in Azerbaijan was 770,000, 700,000, 670,000 and 690,000 barrels in the first, second, third and fourth quarters of 2020 respectively.

In April 2020, OPEC and non-OPEC countries entered into an agreement on the reduction of daily oil production by 9.7 million barrels in May-June and 164,000 barrels for Azerbaijan.

On July 31, the first phase of the OPEC+ agreement of April 12 to reduce daily oil production by 9.7 million barrels was completed.

In the second phase of the agreement, covering the period from August 1 to December 31, the daily production of crude oil in OPEC+ countries will be reduced by 7.7 million barrels, which is 18 percent less than in October 2018.

At the 12th Ministerial Meeting of OPEC and non-OPEC countries, it was decided to reduce the daily production of crude oil by 7.2 million barrels in January 2021 and to regulate the increase in daily production provided, that it does not exceed 0.5 million barrels, through monthly OPEC+ Ministerial Meetings. Azerbaijan’s commitment, according to the new “Declaration on Cooperation”, was 123,000 barrels in January 2021. Thus, in January, Azerbaijan has to increase daily oil production by 8,000 barrels and keep production at the level of 595,000 barrels.

Additionally, at the 13th Ministerial Meeting of the OPEC+ countries on January 5, it was decided to continue the existing quotas on daily crude oil production in February-March. Thus, Azerbaijan has the same commitments as in January for February-March.

Ayya Lmahamad is AzerNews’ staff journalist, follow her on Twitter: @AyyaLmahamad