Azerbaijani president: If OPEC+ countries cut oil production, price will remain $60-$70 a barrel
Baku, Azerbaijan, Jan. 29
If all countries of OPEC+ take a responsible approach to the fulfillment of commitments to reduce oil production, then the price will probably remain in the range of $60-$70 per barrel, President of Azerbaijan Ilham Aliyev said in an interview with the TV channel Russia-1 in Davos.
Speaking about what should be expected from the oil market and the prices in 2019, he said that everything will depend on how the agreements countries have reached within the OPEC+ format are implemented
"Azerbaijan, for its part, has taken the necessary measures and made commitments to reduce oil production, and we are honoring these obligations. Therefore, I think that if all countries take a responsible approach to this issue, then the price will probably remain in today's range - $60-$70 per barrel. Although it is very difficult to make a prediction for the whole year, I think, and according to most analysts, this range may be realistic and also most suitable for companies, for exporting countries and for consumers," the president said.
Answering the question about the US oil and gas companies deciding to leave Azerbaijan after 25 years, President Aliyev said this practice has existed before as well.
"Azerbaijan has been successfully working with international companies on the exploration and development of major oil and gas fields in the Azerbaijani sector of the Caspian Sea for 25 years. Over the years, some companies have sold their shares and others bought them. So it is a natural process," he said.
"I have to say that Azerbaijan's oil and gas projects are very profitable. Over the past 15 years, about $250 billion have been invested in our economy. Half of this investment is foreign and most of it was channeled into the oil and gas sector. Export oil and gas pipelines were also built, allowing us the opportunity to transport our oil in many directions. Therefore, the profitability of oil and gas projects is increasing," the president noted.
President Aliyev noted that each company has its own investment policy and strategy, and some prefer to leave a project by selling its shares.
"I should say that over 25 years, our main energy partners have long recovered all their costs and made major profits. Therefore, I think that the decision of American companies to sell their shares is quite natural, and who will buy them will depend on who they offer them to. Of course, Azerbaijan as a host country of resources has the right to approve or reject these transactions. But, as a rule, all previous transactions have been approved by us," President Aliyev added.