OPEC reveals Azerbaijan’s oil production forecasts
Baku, Azerbaijan, Jan.18
By Aygun Badalova - Trend:
Azerbaijan's oil production is estimated to have remained stagnant during 2015 averaging 0.86 million barrels per day (bpd), according to OPEC Monthly Oil Market Report published on January 18.
This figure was revised up by 10,000 bpd from the previous report.
On a quarterly basis, Azerbaijan's oil output is estimated to average 0.89 million bpd, 0.85 million bpd, 0.85 and 0.85 million bpd, respectively.
OPEC expects Azerbaijan's oil production to decline by 40,000 bpd to 0.82 million bpd in 2016.
The main oil output in Azerbaijan comes from Azeri-Chirag-Guneshli field. This offshore block produces Azeri Light oil with 0.15 percent sulfur and 35 degrees API.
The contract for the Azeri-Chirag-Guneshli development, with proven reserves of nearly 1 billion tons of oil, was signed in 1994. Shares in the contract are as follow: BP (operator) - 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, Itochu - 4.3 percent and ONGC - 2.72 percent.
Low oil prices have seen BP rein in spending and it is likely the capital will be diverted to resources which the company judges to have better long-term prospects - such as the Shah Deniz II gas field project, according to OPEC report.
"Indeed, gas will be a key driver of BP's production portfolio over the coming years. Maintenance in 2015 was much lower compared to 2014. Despite lower maintenance, output declines in 2015 stepped up to more than three percent and are only likely to increase in 2016," the report said.
Azerbaijan's proved oil reserves amounted to 7 billion barrels at the end of 2014, according to BP's Statistical Review.
BP and its partners produced 16 million tons during the first half of 2015 on ACG block, which is the same as in the first half of 2014.