BAKU, Azerbaijan, Dec.15
By Leman Zeynalova – Trend:
Azerbaijan’s liquids output is expected to increase slightly in Q4 2020, Trend reports citing OPEC.
OPEC’s December Oil Market Report shows that Azerbaijan’s preliminary liquids output in October was flat m-o-m at an average of 0.70 mb/d.
“Azerbaijan has reduced its output from 1Q20 by 0.06 mb/d to average 0.73 mb/d in 2Q20, and saw a further reduction by 0.04 mb/d to average 0.69 mb/d in 3Q20 in line with the agreement under the DoC.
For 4Q20, output is forecast to increase slightly to 0.70 mb/d. Production of condensate has increased since the start-up of production from the Shah-Deniz gas and condensate field and output is expected to rise as the Shah-Deniz partners plan to commission the field’s deepwater East South flank in the first half of 2021, according to Argus.
On the other hand, crude production from the offshore ACG complex was nearly 11 percent lower y-o-y at 482 tb/d in the first-nine months of 2020. Azerbaijan monthly crude and total liquids output Azeri-Chirag-Guneshli has fallen steadily from a peak of more than 820 tb/d in 2010, due to natural decline. Production of condensate and NGLs has been more or less steady at 1.15 mb/d in October and November. Crude output in August-to-November was flat at 0.59 mb/d. For 2020, liquids production is forecast to decline by 0.06 mb/d, y-o-y, to average 0.73 mb/d. For 2021, a minor increase of 0.01 mb/d y-o-y, is forecast,” reads the report.
Daily oil production (together with condensate) in Azerbaijan stood at 686,200 barrels in November 2020, according to the energy ministry’s data.
Around 587,000 barrels of this volume accounted for crude oil and 99,200 barrels for condensate.
The OPEC+ agreement of April 12 provides for the daily production of a total of 7.7 million barrels.
According to the decision taken on December 3, 2020 at the 12th meeting of the OPEC+ ministers, the daily crude oil production in January 2021 by OPEC+ countries will amount to 7.2 million tons. Azerbaijan will cut production by 123,000 barrels. Thus, in January 2021, the proposed daily oil production for Azerbaijan is set at 595,000 barrels.
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