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Azerbaijan fulfills its obligations under OPEC+ agreement in November

09 December 2020 [17:15] - TODAY.AZ

By Azernews


By Ayya Lmahamad

Azerbaijan fulfilled its obligations under OPEC+ agreement in November by maintaining its production of crude oil at 587,000 barrels, Energy Ministry has reported.

In November, daily oil production, including condensate, in Azerbaijan amounted to 686,200 barrels. 

Out of the total daily oi production, crude oil amounted to 587,000 barrels and condensate to 99,200 barrels.

According to the “Declaration on Cooperation”, Azerbaijan, which produced 718,000 barrels of crude oil per day in October 2018, should maintain its production of crude oil at 587,000 barrels during the period of August-December, reducing by 131,000 barrels per day.

It should be noted that in order to fulfill the obligations, the daily crude oil production should be reduced from the levels recorded in October 2018, i.e. from 567,000 barrels to 461,000 barrels at Azeri-Chirag-Guneshli block of fields, and from 151,000 to 126,000 barrels at SOCAR  (Azneft PU, JV and Affiliated Companies).

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.

On July 31, the first phase of the OPEC+ agreement of April 12 to reduce daily oil production by 9.7 million barrels was completed.

In the second phase of the agreement, covering the period from August 1 to December 31, the daily production of crude oil in OPEC+ countries will be reduced by 7.7 million barrels, which is 18 percent less than in October 2018.

Additionally, at the 12th Ministerial Meeting of OPEC and non-OPEC countries, it was decided to reduce the daily production of crude oil by 7.2 million barrels in January 2021 and to regulate increase in daily production provided, that it does not exceed 0.5 million barrels, through monthly OPEC+ Ministerial Meetings. Azerbaijan’s commitment, according to the new “Declaration on Cooperation”, will be 123,000 barrels in January 2021. Thus, in January, Azerbaijan must increase daily oil production by 8,000 barrels and keep production at the level of 595,000 barrels.

URL: http://www.today.az/news/business/201334.html

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