Azerbaijan supports daily oil output hike within OPEC+

By Azernews

By Ayya Lmahamad

Azerbaijan has supported the decision made on increasing daily oil production by 432,000 barrels in May, at the 27th Ministerial Meeting of OPEC and non-OPEC countries.

It should be noted that the growth was determined at the 19th meeting held in July last year according to the agreement on partial changes to the base indicators of oil production.

As there are no changes to the basic indicators for Azerbaijan, the country's daily crude oil output is expected to increase by 7,000 barrels to 688,000 barrels in May, and the reduction commitment will be 30,000 barrels.

Additionally, it was agreed to hold the 28th Ministerial Meeting of the OPEC plus countries on 5 May.

Since April 2020, OPEC and non-OPEC countries have entered into an agreement on the reduction of daily oil production volume. 

At the 19th Ministerial Meeting of OPEC and non-OPEC countries, Azerbaijan has supported the decision to increase daily crude oil output by 400,000 barrels per month in August-December 2021, and to extend the Declaration of Cooperation until late 2022, with partial adjustments to the base level of oil production from May this year.

That Declaration of Cooperation envisaged increasing daily crude oil production volume in Azerbaijan every month from August to the end of 2021 and reducing the obligations related to cuts accordingly.

Moreover, from May 2022 to the end of the year, the calculation of Azerbaijan's oil production obligations will be continued on the basis of the existing base. In other words, the 718,000-barrel daily crude oil production in October 2018 in Azerbaijan will remain at the base level for determining the output level next year.