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Wednesday August 17 2022

OPEC forecasts increase in liquids production in Azerbaijan

13 August 2021 11:50 (UTC+04:00)
OPEC forecasts increase in liquids production in Azerbaijan

By Ayya Lmahamad

Azerbaijan will increase the volume of liquids production by 0.07 mb/d to an average of 0.82 mb/d in 2022, according to the August report of the Organization of Petroleum Exporting Countries (OPEC) Monthly Oil Market.

"In 2022, Azerbaijan’s liquids supply forecast was revised up by 39 tb/d on the back of the incremental production adjustments in the recent DoC decision and is projected to grow by 0.07 mb/d to average 0.82 mb/d," the report reads.

Meanwhile, the report sees a decrease in the forecast for Azerbaijan’s oil production for 2021 from 0.77 mb/d to 0.75 mb/d.

"In 2021, Azerbaijan’s liquids supply is revised down by 20 tb/d, due to lower-than-expected NGLs output in 2H21, and is expected to show growth of 0.02 mb/d for the year to average 0.75 mb/d," the report reads.

It should be noted that the organization forecasted Azerbaijan's liquid production to be at the level of 0.80 mb/d in 2022 and at the level of 0.77 mb/d in 2021 in its report from July.

Since April 2020, OPEC and non-OPEC countries have entered into an agreement on the reduction of daily oil production volume. Earlier, Azerbaijan supported the decision to increase daily crude oil output by 400,000 barrels per month in August-December 2021, and to extend the Declaration of Cooperation until the end of 2022, with partial adjustments to the base level of oil production from May next year, at the 19th Ministerial Meeting of OPEC and non-OPEC countries.

The new Declaration of Cooperation envisages increasing of daily crude oil production volume in Azerbaijan every month from August to the end of the year and reducing the obligations related to cuts accordingly.

Moreover, from May 2022 to the end of the year, the calculation of Azerbaijan's oil production obligations will be continued on the basis of the existing base. In other words, the 718,000-barrel daily crude oil production in October 2018 in Azerbaijan will remain at the base level for determining the output level next year.

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

Follow us on Twitter @AzerNewsAz

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