TODAY.AZ / Business

Oil & gas production volumes revealed

21 August 2019 [13:41] - TODAY.AZ

By Azernews


By Mirsaid Ibrahimzade

Azerbaijan’s oil and gas sector still accounts for a huge share in the country’s GDP.

As much as 22.02 million tons of crude oil, including gas condensate, was produced in Azerbaijan in January-July 2019, which recorded a 2.4 percent decrease compared to the same period last year, according to the State Statistics Committee.

Commercial crude oil production amounted to 21.97 million tons, a 2.5 percent decrease.

Within the new OPEC + deal, the countries of the cartel cut production by 800,000 barrels per day, and non-OPEC countries by 400,000 per day. Azerbaijan supported the proposal of the OPEC+ monitoring committee on the extension of the deadline to reduce oil production.

As part of the agreement, Azerbaijan reduced daily production by 20,000 barrels since January 1, 2019.

The country, which is an important supplier of natural gas in the Caspian Sea region, particularly to European markets, keeps increasing gas exports.

As for gas production in January-July 2019, Azerbaijan produced 20.31 billion cubic meters, a growth by 19.9 percent compared to January-July 2018. At the same time, commercial gas production amounted to 14.32 billion cubic meters, which showed an increase of 34 percent.

Azeri–Chirag–Gunashli (ACG) is the largest oil and gas field in the Caspian Sea, covering more than 432 square kilometers. A contract for the development of ACG block of oil and gas fields was signed in 1994 for 30 years.

Proven oil reserves of ACG block of oil and gas fields are estimated at 1.2 billion tons, while gas reserves make 350 billion cubic meters.

On September 14, 2017, a modified and redeveloped agreement was signed on joint development and shared distribution of production from the Azeri, Chirag fields and the deepwater part of the Gunashli field (ACG). The new agreement provides for the development of the field until 2050.

Speaking of the pipelines which will deliver Azerbaijani gas to European markets, it is important to note TANAP, which, along with TAP, is a part of Southern Gas Corridor project that envisages transportation of gas from Azerbaijani Shah Deniz-2 gas field to European markets.

The main components of the project are Shah Deniz Stage 2, expansion of the South Caucasus pipeline Baku-Georgia-border with Turkey, construction of the Trans-Anatolian Natural Gas Pipeline (TANAP) from Turkey’s eastern border to the western border and the Trans-Adriatic Pipeline (TAP) connecting Greece, Albania and the Adriatic Sea in southern Italy.

Supplies of Azerbaijani gas to Europe are expected in early 2020 in the amount of 10 billion cubic meters. In addition, 6 billion cubic meters of Azerbaijani gas will be supplied to the western regions of Turkey. Deliveries to Turkey began in the summer of 2018.

URL: http://www.today.az/news/business/185589.html

Print version

Views: 748

Connect with us. Get latest news and updates.

Recommend news to friend

  • Your name:
  • Your e-mail:
  • Friend's name:
  • Friend's e-mail: