BAKU, Azerbaijan, April 28
By Leman Zeynalova – Trend:
BP expects to reduce its production in Azerbaijan in the second quarter of this year, said Murray Auchincloss , Upstream CFO, BP, Trend reports.
Auchincloss noted that currently, BP is in talks in Angola, Azerbaijan, Russia and the Middle East.
BP will see a decline in its production in the second quarter, as OPEC+ deal comes on stream, TASS quoted him as saying during a video conference. However, Auchincloss didn’t disclose any figures.
BP Upstream CFO pointed out that the volume is not the most important thing today.
Earlier, Azerbaijan’s Energy Ministry told Trend that it has recommended all oil producers in the country, as well as Azerbaijan International Operating Company (AIOC), including BP to cut the daily oil production from May 1.
The oil producers were recommended to reduce their output in accordance with the percentage of reduction of the daily crude oil production from October 2018 levels and taking into account the output volume of the oil producers, said the ministry.
During the 9th (Extraordinary) OPEC and non-OPEC Ministerial Meeting held on April 9, 2020, the participants agreed to adjust downwards their overall crude oil production by 10.0 mb/d, starting on 1 May 2020, for an initial period of two months that concludes on 30 June 2020.
For the subsequent period of 6 months, from 1 July 2020 to 31 December 2020, the total adjustment agreed will be 8.0 mb/d. It will be followed by a 6.0 mb/d adjustment for a period of 16 months, from 1 January 2021 to 30 April 2022. The baseline for the calculation of the adjustments is the oil production of October 2018, except for the Kingdom of Saudi Arabia and The Russian Federation, both with the same baseline level of 11.0 mb/d. The agreement will be valid until 30 April 2022, however, the extension of this agreement will be reviewed during December 2021.
Azerbaijan has committed to reduce its daily production by 23 percent (164,000 barrels) from May through June 2020, 18 percent (131,000 barrels) from July through December 2020 and 14 percent (98,000 barrels) from January 2021 through April 2022.
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