Azernews.Az

By Gulgiz Dadashova

OPEC pumped less crude in February amid efforts by big oil producers to negotiate a deal that would limit oil output and raise oil prices on the global market.

The Cartel’s total oil production averaged 32.38 million barrels per day (bpd) last month, a decrease of 175,000 bpd over the previous month, OPEC Monthly Oil Market Report said.

Crude oil output decreased mostly from Iraq, Nigeria and UAE, while production increased in Iran, Saudi Arabia and Kuwait.

Oil production in Saudi Arabia, the largest oil producer and exporter within OPEC, amounted to 10.142 million bpd in February, a 14,000 bpd increase from January level.

Iran’s oil production increased in February by 187.8 million bpd to 3.132 million bpd, while Iraq’s oil production fell by 263,200 bpd to 4.156 million bpd.

Supplies from producers outside the Cartel also fell by 40,000 barrels a day in February, and is expected to contract by around 700,000 barrels a day this year to average 56.39 million barrels, OPEC said in its report.

OPEC assures that global oil demand, which saw a spectacular growth last year, will grow by 1.25 million barrels a day in 2016.

The share of OPEC crude oil in total global production decreased slightly to 33.7 percent in February compared with the previous month.

The official quota for OPEC oil production stands at 30 million barrels per day.

The meeting between OPEC and non-OPEC countries, on a plan to freeze output levels in a bid to support prices reportedly may take place in mid-April in Doha.

Azerbaijan's oil output

In Azerbaijan, the total oil production declined by 10,000 barrels per day (bpd) to average 0.86 million bpd in 2015, according to the OPEC estimates.

“Despite higher output in January 2016 of 20,000 bpd m-o-m (month over month) due to a return from maintenance at ACG’s (Azeri-Chirag-Guneshli ) oil field complex, the y-o-y (year over year) decline is anticipated to increase to 40,000 bpd in 2016 to average 0.82 million bpd, due to higher maintenance expectations and the lack of replacement for mature field losses,” the report said.

Azerbaijan’s oil production will average 0.9 million bpd in the first quarter of 2016, according to OPEC’s forecasts.

The main oil output in Azerbaijan comes from the 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.

Azerbaijan produced 41.69 million tons of oil and gas condensate in 2015, or 0.8 percent less than in 2014, according to the State Statistics Committee. This is while 41.9 million tons of oil and gas condensate were produced in Azerbaijan in 2014, compared to 43.1 million tons in 2013.

Azerbaijan’s proved oil reserves amounted to 7 billion barrels at the end of 2014, according to BP’s Statistical Review.

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