BAKU, Azerbaijan, Jan.14
By Leman Zeynalova – Trend:
For 2021, in line with crude oil voluntary production adjustments through the OPEC+ agreement, Azerbaijan’s liquids supply is forecast to remain flat at 0.73 mb/d, Trend reports citing OPEC.
“Azerbaijan’s liquids output in November was up by 0.02 mb/d m-o-m to average 0.71 mb/d, which includes 0.59 mb/d of crude oil and 0.12 mb/d of NGLs.
Condensate output from the Shah Deniz offshore field development saw a record high of 123 tb/d and is expected to rise further as the Shah Deniz partners plan to commission the field’s deepwater East South flank in the 1H21.
For 2020, liquids production is estimated to decline by 0.06 mb/d, y-o-y, to average 0.73 mb/d,” the cartel said in its Monthly Oil Market Report for January 2021.
Azerbaijani Ministry of Energy said that the daily oil production volume (together with condensate) amounted to 688,800 barrels in Azerbaijan in December 2020.
Some 587,000 barrels of this volume accounted for crude oil, 101,800 barrels - condensate.
In accordance with the "Declaration of Cooperation", taking into account daily crude oil production volume - 718,000 barrels in October 2018, Azerbaijan had to keep crude oil production volume – 587,000 barrels, reducing its production volume by 131,000 barrels per day from August through December 2020.
The OPEC + agreement dated April 12 envisages daily production volume - 7.7 million barrels.
In accordance with the decision made on December 3, 2020, at the 12th OPEC and non-OPEC Ministerial Meeting, the daily crude oil production in January 2021 by OPEC + countries will reach 7.2 million tons. Azerbaijan will cut the production volume by 123,000 barrels.
Thus, the proposed daily oil production for Azerbaijan was set at 595,000 barrels in January 2021.
A decision was made at the 13th OPEC and non-OPEC Ministerial Meeting on January 5, 2021, to extend the current quotas for daily crude oil production in February-March.
In accordance with the new agreement, a decrease in the daily crude oil production volume by the OPEC countries will reach 7.1 million in February while 7.05 million barrels per day in March. Azerbaijan's obligations on oil production in February-March will not change.
Thus, Azerbaijan will maintain production volume at 595,000 barrels in January, February, and March by increasing daily crude oil production volume by 8,000 barrels compared to December 2020.
Follow the author on Twitter: @Lyaman_Zeyn