Azerbaijan to increase daily oil output in December 2021

5 November 2021 18:16 (UTC+04:00)

2 034

By Ayya Lmahamad

Azerbaijan will increase the daily crude oil production by 7,000 barrels compared to November, maintaining it at 654,000 barrels in December 2021, the Energy Ministry has reported.

An agreement was reached to maintain the decision adopted at the July meeting of ministers to increase the daily crude oil production by 400,000 barrels per month during August-December 2021, at the 22nd meeting of the ministers of the OPEC+ countries held on November 4.

Within the Declaration of Cooperation adopted, Azerbaijan's commitment to cut output will amount to 64,000 barrels per day in December.

"So Azerbaijan was provided with an opportunity to increase the daily crude oil production by 7,000 barrels compared to November, maintaining it at 654,000 barrels," the ministry stated.

In response to questions addressed during the press conference after the meeting, Energy Minister Parviz Shahbazov said that the decision adopted today, as always, was made on the basis of consensus and is based on facts, researches and analyses.

It should be noted that it was agreed to hold the 23rd meeting of the ministers of the OPEC + countries on December 2.

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 late 2022, with partial adjustments to the base level of oil production from May next year.

That Declaration of Cooperation envisages increasing 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.

Since April 2020, OPEC and non-OPEC countries have entered into an agreement on the reduction of daily oil production volume.

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