Azernews.Az

Azerbaijan's oil production will decrease by 20,000 barrels per day to 0.97 million bpd in 2012 compared to 0.99 million bpd in 2011, the U.S. Energy Information Administration (EIA) said in a monthly report.

According to the EIA's estimates, the country produced 0.96 million bpd in the first quarter of 2012 and 0.95 million bpd in the second quarter.

In Q3 the EIA estimates oil production in Azerbaijan at 0.91 million bpd, while in Q4 it is expected to be 1.06 million bpd.

In 2013, the EIA predicts Azerbaijan's oil production to decrease by 10,000 bpd to 0.96 mln bpd.

According to the EIA's forecasts, the highest level of the country's production in 2013 will be observed in the first and second quarters -- at 0.97 mln bpd. Production will amount to 0.96 mln bpd in the third quarter and 0.94 mln bpd in the fourth quarter of next year.

Oil production in the resource-rich South Caucasus republic amounted to 1.037 million bpd in 2010, or 0.5 percent over 2009.

Most of Azerbaijan's oil is produced from the Azeri-Chirag-Gunashli block of fields in the Caspian Sea, developed by a BP-led international consortium. Azeri Light oil with a sulfur content of 0.15 percent (35 degrees API) is produced there.

ACG participating interests are: BP (35.83%), SOCAR (11.65%), Chevron (11.27%), Inpex (10.96%), Statoil (8.56%), ExxonMobil (8%), TPAO (6.75%), Itochu (4.3%), and Hess (2.72%). Hess has sold its share in the project to India's ONGC, and the transaction will be completed in the first quarter of 2013.

According to BP, Azerbaijan's proven oil reserves amounted to 7 billion barrels as of early 2011.