OPEC forecasts stable oil output in Azerbaijan by 2040

By  Trend

OPEC forecasts Azerbaijan’s oil production to be stable by 2040 at 0.7-0.8 million barrels per day, according to the cartel’s World Oil Outlook (WOO).

Azerbaijan’s crude and natural gas liquids (NGLs) production is expected to continue to decline, falling from 0.8 million barrels per day (mb/d) in 2016 to 0.7 mb/d in 2022, in the absence of major new start-ups and as output at the large Azeri-Chirag-Guneshli (ACG) field complex matures, said the report.

OPEC expects the output in Azerbaijan to stand at 0.8 mb/d in 2017, 0.7 mb/d in 2018, 0.7 mb/d in 2019, 0.8 mb/d in 2020 and 0.7 mb/d in 2021 and 2022 each.

The cartel believes that the same situation will continue in the longer term. It forecasts the production in Azerbaijan at 0.7 mb/d in 2025-2040.

The main oil output in Azerbaijan currently comes from the Azeri-Chirag-Guneshli (ACG) field. Azeri Light oil with a sulfur content of 0.15 percent is produced at this block.

The contract for development of ACG was signed in 1994. On September 14, 2017 a new agreement for development of ACG block untill 2050 was signed in Baku.

Shareholders in the project are: BP (operator) – 30.37 percent, AzACG (SOCAR) – 25 percent, Chevron – 9.57 percent, INPEX – 9.31 percent, Statoil – 7.27 percent, ExxonMobil – 6.79 percent, TP – 5.73 percent, ITOCHU – 3.65 percent, ONGC Videsh Limitd (OVL) – 2.31 percent.