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SOCAR: Number of drilling operations down due to shut-down of some onshore fields

Oil&Gas Materials 21 September 2020 10:43
SOCAR: Number of drilling operations down due to shut-down of some onshore fields

BAKU, Azerbaijan, Sept. 21

By Leman Zeynalova – Trend:

The number of drilling operations has naturally decreased due to the shut-down of some onshore fields in Azerbaijan, Trend reports referring to the article of Azerbaijani state oil company SOCAR’s President Rovnag Abdullayev.

He was talking about the process of fulfillment of the OPEC+ agreement by Azerbaijan.

“Twenty three participants of the OPEC deal came together on April 9, 2020 to discuss the economic recession in the world markets caused by the COVID-19 pandemic and agreed to reduce the oil production by 9.7 million barrels per day from May 1, 2020 in order to ensure demand and supply balance.

“Azerbaijan also took part in the meeting as an OPEC+ participant and undertook voluntary oil production cut obligations alongside with other countries. Azerbaijan’s Energy Ministry proposed to proportionally distribute the temporary output cut quotas among the producers in the country and the fulfillment of the proposal was entrusted to SOCAR by Azerbaijan’s Cabinet of Ministers.

"According to the agreement, Azerbaijan’s daily oil production shouldn’t exceed 554,000 barrels in May and June 2020, 587,000 barrels in July-December and 620,000 barrels in January 2021-April 2022. This applies to crude oil production only. The main factors of the decision-making mechanism in the process of production cuts are economic efficiency of the fields, their technical sustainability, industrial safety and minimization of negative impact on the environment. Onshore oil and gas fields with high production costs and low productivity have been shut down, while the development of offshore fields with higher profitability is well underway," said Abdullayev.

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