OPEC predicts steady oil production in Azerbaijan
The Organization of the Petroleum Exporting Countries (OPEC) predicts that oil production in Azerbaijan will remain steady in 2015.
"Azerbaijan's oil supply is anticipated to average 0.86 million barrels per day, remaining unchanged from the previous Monthly Oil Market Report and indicating steady production in 2015," OPEC's monthly report on the oil market said August 11.
Azeri crude oil output in June increased by 21,000 barrels per day to average 0.78 million barrels per day, following a decline of 57,000 barrels per day in May, which was a result of maintenance at the West Chirag platform that began on May 21 and lasted through June 6.
The total oil production (crude+NGLs) was pegged at 0.86 million barrels per day in May.
On a quarterly basis, Azerbaijan's oil output is estimated to average 0.85, 0.87, 0.86 and 0.79 million barrels per day, respectively.
Meanwhile OPEC predicts decrease in oil production in Azerbaijan in 2016. Oil production in Azerbaijan will reach 0.8 million barrels per day in every quarter of 2016.
The main volume of oil produced in Azerbaijan falls on the Azeri-Chirag-Guneshli block of offshore fields. Light Azeri Light oil with a sulfur content of 0.15 percent (35 degrees API) is produced at this area.
The contract for development of ACG field was signed in 1994. The proven oil reserve of the block nears 1 billion metric tons.
The shareholders of the project are: BP (operator in the Azeri-Chirag-Guneshli) - 35.78 percent, Chevron - 11.27 percent, Inpex - 10.96 percent, AzACG - 11.65 percent, Statoil - 8.56 percent, Exxon - 8 percent, TPAO - 6.75 percent, Itocu - 4.3 percent and ONGC - 2.72 percent.
Trans-Caspian transport route: what does it mean for Azerbaijan?
The member-states of the Trans-Caspian international transport route will be able to earn $1 billion in freight transportation for the first few years, Akif Mustafayev, TRACECA (Europe-Caucasus-Asia) transport cooperation program national secretary on Azerbaijan, said.
The profit of Kazakhstan, Azerbaijan, Georgia and Turkey as a result of the transportation via this route will increase in the future, he said.
The Trans-Caspian international transport route runs through China, Kazakhstan, Azerbaijan, Georgia and Turkey and then to Europe. The first test container train arrived in the Baku International Sea Trade Port from China via this route in early August.
"The train has arrived from China to Azerbaijan, but it is necessary that this route gets extended through Georgia and Turkey, and then further to Europe," he said. "Work is currently underway in this regard, and the arrival of the first train gives hope that the work will be completed in the near future."
In general, as the national secretary said, all the projects realized recently, including the construction and reconstruction of the railway in Azerbaijan, the construction of the Baku-Tbilisi-Kars railway's section and a new international seaport in Alat, are aimed at high-level cargo transportation from China to Europe.
"The goal is to achieve high-level cargo transportations from China to Europe via TRACECA. This container train was, as they say, the harbinger."
"China has great economic potential. In this country, a lot of different products, which are sold throughout the world, are made."
"Now there is a process of switching to containers in transportation in the world: about 80 percent of the world's cargo is transported in containers, because it is the most efficient form of transportation," he said.
Speaking of Chinese products, one shouldn't imply poor quality goods, according to the national secretary.
"In Europe, low-quality products are not allowed," said Mustafayev. "The products made in China, which are supplied to Europe, are of good quality and inexpensive. This is especially true of computer technology."
TRACECA is an international cooperation program in the field of transport between the EU and partner countries in Eastern Europe, South Caucasus and Central Asia. The organization has a permanent secretariat in Baku.
TRACECA member states are Azerbaijan, Bulgaria, Georgia, Kazakhstan, Kyrgyzstan, Armenia, Moldova, Romania, Tajikistan, Turkey, Turkmenistan, Ukraine, and Iran.