BAKU, Azerbaijan, May 13
By Leman Zeynalova – Trend:
Azerbaijan’s petroleum and other liquids production will stand at 0.71 million barrels per day in 2020, as compared to 0.79 million barrels per day in 2019, the US Energy Information Administration (EIA) said in its May Short-term Energy Outlook (STEO), Trend reports.
This is while in its April STEO, EIA expected this figure to stand at 0.75 million barrels per day.
The country’s expected quarterly production for 2020 is as follows: 0.78 million barrels per day in the first quarter (Q1) of 2020, 0.66 million barrels per day in Q2, 0.69 million barrels per day and 0.71 million barrels per day in Q3 and Q4, respectively.
EIA forecasts that petroleum and other liquids production in Azerbaijan will rise in 2021 to stand at 0.74 million barrels per day.
The expected production volume for all quarters of 2021 is 0.74 million barrels per day.
The Azeri-Chirag-Gunashli block of offshore fields is giving the major part of the oil produced in Azerbaijan. The Azerbaijani Light oil is produced at that block.
Azerbaijan has joined Declaration of Cooperation, which was adopted after the ministerial meetings of the OPEC + countries (held on April 9 and April 12, 2020) and envisioned a cut in oil output by 9.7 million barrels per day (bpd) from May through June, 7.7 million bpd from July through December, and by 5.8 million bpd from January 2021 through April 2022.
In accordance with a new OPEC+ deal, Azerbaijan shall reduce oil production by 164,000 barrels from May through June 2020 against 718,000 barrels of crude oil produced in October 2018. During this period, Azerbaijan should maintain the daily crude oil production at the level of 554,000 barrels.
Azerbaijan’s obligations made up 131,000 barrels from July through December 2020, and 98,000 barrels from January 2021 through April 2022.
According to the quotas, the daily crude oil production in Azerbaijan from early July through December this year shouldn’t exceed 587,000 bpd, and from January 2021 through April 2022 – not more than 620,000 bpd.
Since May 1, joint ventures and operating companies of Azneft production association have been carrying out a process of daily production cut at the Azeri-Chirag-Guneshli fields.
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