OPEC slightly improves forecast for oil production in Azerbaijan

Oil&Gas Materials 12 July 2016 16:15 (UTC +04:00)

Baku, Azerbaijan, June 13

By Elena Kosolapova – Trend: OPEC slightly improved forecast for oil production in Azerbaijan in 2016.

According to OPEC’s monthly oil market report published July 12, Azerbaijan’s oil supply is anticipated to average 0.85 million barrels per day (bpd), indicating a decline by 10,000 bpd in output in 2016, revised up by 10,000 bpd from the previous report published in June.

OPEC also expects decline in oil production in Azerbaijan by 40,000 bpd in 2017 due to a lack of new project start-ups.

June 2016 oil output in Azerbaijan declined by 10,000 bpd compared to May 2016 and increased by 20,000 bpd compared to June 2015 to 0.78 million bpd. June total liquids output dropped by 10,000 bpd to average 0.86 million bpd.

The main oil output in Azerbaijan currently comes from the Azeri-Chirag-Guneshli field. This offshore block produces Azeri Light oil with 0.15-percent sulfur content and 35 degrees API.

The contract for the Azeri-Chirag-Guneshli development, with proven reserve of nearly one billion tons of oil, was signed in 1994.

Azerbaijan's proven oil reserves amounted to seven billion barrels at the end of 2015, according to BP's Statistical Review.

Azerbaijan produced 41.69 million tons of oil and gas condensate in 2015, or 0.8 percent less than in 2014, according to Azerbaijan’s State Statistics Committee.

Edited by EA

Follow the author on Twitter: @E_Kosolapova