TODAY.AZ / Business

Azerbaijan to fulfill its OPEC obligation by 100 pct

13 June 2020 [11:06] - TODAY.AZ

By Azernews


By Ayya Lmahamad


Azerbaijani Energy Minister Parviz Shahbazov has said that his country intends to reach 100 percent fulfillment of obligations on reduction of oil production within OPEC+ deal.

Addressing the webinar on “Energy Issues in the post-COVID-19 World” organized via videoconference by Azerbaijan Center of Analysis of International Relations (AIR Center) on June 11, the minister said: “In May Azerbaijan fulfilled its obligations to reduce oil production by 98 percent. This is a high figure. We plan to reduce production by 2,500 barrels in June to meet our commitments.”

Furthermore, he noted that during the pandemic the oil marked faced a number of serious problems.

The minister said that the most important problems were the general economic downturn, a decline in demand for oil and a sharp drop in oil prices, as well as the inability of OPEC+ countries to reach an agreement in March, adding that one month was nevertheless enough to understand that the international oil market needs a production adjustment mechanism.

"Everyone understood the importance of OPEC+ in this situation. On April 12, OPEC+ reached an agreement and put the adjustment mechanism back into operation. It started working, and the results are obvious. We all understand how important OPEC+ is in the future," Shahbazov said.

Likewise, Shahbazov noted that the forecast figures for 2020 do not inspire optimism, as there may be a lack of investment in the oil industry.

"In the future, there may be a lack of investment in the oil industry. The investment deficit in the energy sector is expected to decrease by $400 billion and expenditures by 30 percent. The level of shale oil production, which put downward pressure on prices, stimulates the price under current conditions. If prices remain at $50 per barrel for a long time, there will be significant changes in the shale sector and the global oil market," he said.

For his part, OPEC Secretary General Mohammad Sanusi Barkindo said that "OPEC is very proud to have Azerbaijan participating in the agreement to reduce oil production and is grateful for the high-level support. As our Organization celebrates its 60th anniversary this year, we would be happy to welcome Azerbaijan as a member of the OPEC family.”

He stressed that the world owes much to Azerbaijan for promoting international energy cooperation and for being at the forefront of efforts to ensure sustainable stability in the oil market.

Moreover, Barkindo noted that participation of Azerbaijan as an observer at the Gas Exporting Countries Forum, ensures further expansion of Azerbaijan’s global cooperation with many OPEC member countries and countries participating in the oil production reduction agreement.

"Our experience in countering market risks associated with COVID-19 demonstrates the importance of high-level multilateral cooperation. We should not miss the opportunity to work on broader, consensus-based solutions that benefit the industry and ultimately the world. Our door is always open to those who share our values, concerns and hopes for a better future," he said.

It should be noted that in April 2020, OPEC and non-OPEC countries entered into agreement on reduction of daily oil production by 9.7 million barrels in May-June and 164,000 barrels for Azerbaijan.

At the meeting of OPEC and OPEC+ countries on June 6, it was decided to extend the quota by another month - until the end of July.

URL: http://www.today.az/news/business/194538.html

Print version

Views: 1258

Connect with us. Get latest news and updates.

Recommend news to friend

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