Azernews.Az

By Aynur Jafarova

Oil supply in Azerbaijan is estimated to decrease by 40,000 barrels per day (bpd) to average 0.86 million bpd in 2013, OPEC's February oil market report published on Tuesday said.

This figure represents a downward revision of 10,000 bpd from the previous forecasts. The revision has come on the back of an adjustment to the estimate for the fourth quarter of 2012 and has affected the 2013 forecast.

According to OPEC's forecasts, Azerbaijan's output is expected to decline on the back of limited new developments as well as decline in mature producing areas.

The highest level of Azerbaijan's oil production in 2013 will be observed in the first quarter - at 0.89 million bpd. In the second and third quarters of this year production will amount to 0.85 million bpd, in the fourth quarter the figure will be 0.87 million bpd, the report said.

According to BP, the proven oil reserves of Azerbaijan amounted to 7 billion barrels as of early 2012. Oil production in the country amounted to 0.931 million bpd in 2011.

The main volume of oil produced in Azerbaijan falls to the offshore field Azeri-Chirag-Guneshli. This area produces Azeri Light oil with a sulfur content of 0.15 percent (35 degrees API).

Total Former Soviet Union (FSU) oil production is expected to average 13.41 million bpd in 2013, an increase of 0.10 million bpd over 2012, indicating a minor downward revision of 10,000 bpd compared with the previous forecasts, OPEC's report said.

The FSU remains the leading region, in terms of production among all non-OPEC regions. FSU production is expected to maintain a 25 percent share of global output for the year.

According to the report, growth is expected in Kazakhstan and Russia.

Kazakhstan's oil production is seen to increase by 70,000 bpd to average 1.66 million bpd in 2013, the report said. OPEC kept its forecasts on Kazakhstan's oil production for 2013 unchanged.

According to OPEC's forecasts, the oil production in Kazakhstan will reach 1.73 million bpd in the fourth quarter of 2013, which will be the highest level during the year.

In the first quarter of 2013 Kazakhstan's oil production will amount to 1.62 million bpd, in the second quarter - 1.61 million bpd, in the third quarter - 1.65 million bpd, according to OPEC's estimates.

"The startup of the Kashagan is seen as the main driver of the growth in 2013. The major field is seen to start up in the second quarter of 2013," OPEC's report said.

According to BP, Kazakhstan's proven oil reserves were 30 billion barrels in early 2012.

The country's oil production, according to BP, amounted to 1.841 million bpd in 2011, which is 0.9 percent more than the volume in 2010.

In Kazakhstan there are fields such as Tengiz and Karachaganag. The Tengiz Field in western Kazakhstan is one of the deepest and largest oil fields in the world.

The Karachanag Field in north-western Kazakhstan is one of the largest gas condensate deposits in the world. Its estimated initial reserves of hydrocarbons hit 9 billion barrels of condensate and 1.37 trillion cubic meters of gas.

OPEC's report said that Russian oil production is forecasted to increase by 50,000 bpd to average 10.42 million bpd in 2013, unchanged from the previous forecasts. Russia's oil supply is expected to remain steady throughout the year, with new additions expected to offset decline from mature areas.

On a quarterly basis, Russian oil supply is expected to average 10.43 million bpd, 10.42 million bpd, 10.42 million bpd and 10.42 million bpd, respectively, OPEC forecasted.