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Azerbaijan’s oil production to average 0.88 million barrels per day in the first half of 2016 and 0.87 million barrels per day in the second half of 2016, the U.S. Energy Information Administration (EIA) announced in its Short-Term Energy Outlook.

EIA forecasts Azerbaijan’s oil production to average 0.87 million barrels per day in 2015 and 2016 compared to 0.86 million barrels per day in 2014.

The main oil output in Azerbaijan comes from Azeri-Chirag-Guneshli field. This offshore block produces Azeri Light oil with 0.15 percent sulfur and 35 degrees API.

The contract for the Azeri-Chirag-Guneshli development, with proven reserve of nearly 1 billion tons of oil, was signed in 1994. Shares in the contract are as follow: BP (operator) - 35.78 percent, Chevron - 11.27 percent, Inpex - 10.96 percent, AzACG - 11.65 percent, Statoil - 8.56 percent, Exxon - 8 percent, TPAO - 6.75 percent, Itochu - 4.3 percent and ONGC - 2.72 percent.

Azerbaijan’s proved oil reserves amounted to 7 billion barrels at the end of 2014, according to BP’s Statistical Review. BP and its partners produced 16 million tons during the first half of 2015 on ACG block, which is the same as in the first half of 2014.

The prices for AZERI LT oil produced at Azeri-Chirag-Guneshli block of oil and gas fields on the basis of CIF in the Italian port of Augusta was $41.58 per barrel on December 8.

Azerbaijan produces three grades of crude oil—the SOCAR-produced barrels, Azeri BTC, and Azeri Light. The country's main export crude oil streams are Azeri BTC and Azeri Light. These two grades are fairly similar and are mainly sold to European and Asian markets.

SOCAR produces about 20% of the country's oil output. The company is responsible for exploration and production of oil and natural gas in Azerbaijan, operating the country's two refineries, running the country's pipeline system, and managing the country's oil and natural gas imports and exports.

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