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IEA assesses Azerbaijan’s compliance with OPEC+ deal

Oil&Gas Materials 19 January 2021 14:55
IEA assesses Azerbaijan’s compliance with OPEC+ deal

BAKU, Azerbaijan, Jan.19

By Leman Zeynalova – Trend:

Azerbaijan’s oil supply (excluding condensates) stood at 0.59 million barrels per day in December 2020 unchanged from November, Trend reports with reference to the International Energy Agency (IEA).

The country’s compliance with OPEC+ agreement in December was 99 percent and the average compliance was 100 percent, according to the IEA report.

Azerbaijan’s supply baseline amounts to 0.72 million barrels per day. The target for the January 2021 and February 2021 is 0.60 million barrels per day.

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, 2020 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.

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Follow the author on Twitter: @Lyaman_Zeyn

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