By  Trend

Azerbaijan’s oil production is expected to decline by 0.03 million barrels per day (mb/d) year-on-year to average 0.77 million barrels per day in 2018, according to OPEC’s monthly report.

Thus, OPEC left the previous report’s forecast unchanged.

"Preliminary liquids output in 1Q18 was shown stronger than expected in the forecast, therefore it was revised up by 37,000 b/d, leading to an upward revision by 0.01 mb/d in absolute annual supply to average 0.77 mb/d, representing a contraction of 0.03 mb/d, year-on-year," said the report.

OPEC estimates that in Azerbaijan, crude oil production in January increased by 0.01 mb/d month-on-month, most probably from the Azeri-Chirag-Guneshli (ACG) complex, to average 0.75 mb/d, broadly unchanged from January 2017.

Preliminary data on liquids supply in February shows more or less the same level of output, said the cartel.

"Azerbaijan’s liquids supply in 2017 contracted by 0.05 mb/d to average 0.80 mb/d. Azerbaijan is estimated to produce an average of 0.73 mb/d of crude oil and 0.07 mb/d of natural gas liquids (NGLs) in 2017," said the report.

Earlier, Azerbaijan presented data on its daily oil production in March 2018 to the OPEC Joint Technical Committee as part of the Vienna Agreement.

Daily oil production stood at 794,000 barrels in March 2018, of which 740,000 barrels accounted for crude oil and 54,000 barrels for condensate.

Meanwhile, 629,600 barrels of crude oil, 54,000 barrels of condensate and 10,600 barrels of oil products were exported per day.

Azerbaijan’s average daily oil production stood at 781,900 barrels in 2017 under the OPEC agreement to curb daily crude output by 834,000 barrels, said the ministry.

OPEC and several other non-OPEC producers, including Azerbaijan have reached an agreement to extend the production deal for a further nine months. This would shift the expiration date of the agreement from March to the end of 2018. The agreement is on the same terms as those agreed in November 2016.