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Azerbaijan fulfills its OPEC + commitments in 2020

Oil&Gas Materials 8 February 2021 17:09
Azerbaijan fulfills its OPEC + commitments in 2020

BAKU, Azerbaijan, Feb.8

By Zeyni Jafarov – Trend:

Azerbaijan undertook the obligation to reduce oil production under the OPEC + agreement in 2020 and committed it by 100 percent, Trend reports referring to the Ministry of Economy’s annual report.

As the ministry reminded, at the 7th meeting of the ministers of the OPEC member countries and non-OPEC countries, in Austrian Vienna on December 6, 2019, it was decided to reduce the daily oil production in the framework of OPEC + by 500,000 barrels.

In accordance with the Declaration of Cooperation adopted at the 7th meeting, the decision was made to carry out oil production in Azerbaijan from January 2020 in the amount of 769,000 barrels per day, reducing it by 7,000 barrels compared to the previous commitment (776,000 barrels). In January 2020, the daily oil production (with condensate) in Azerbaijan amounted to 769,000 barrels, in February – 750,600 barrels, in March – 763,900 barrels, and in April – 771,400 barrels.

The next Declaration of Cooperation was adopted on April 12, 2020, at the 10th meeting of the ministers of the OPEC member countries and non-OPEC countries. In this context, Azerbaijan has also undertaken obligations to balance the world oil market and stabilize oil prices.

"The Declaration of Cooperation envisioned a three-stage reduction in daily oil production from the level of October 2018. The production quotas of OPEC and non-OPEC countries included only crude oil (no condensate)," the annual report said.

According to the ministry, in the first stage, the OPEC + countries had to reduce daily production by 9.7 million barrels (23 percent) in May-June from the daily production in October 2018.

"Within the new agreement, Azerbaijan, which produced 718,000 barrels of crude oil per day in October 2018, undertook a commitment to maintaining production at 554,000 barrels per day in May-July, reducing production by 164,000 barrels," the report said. “On June 6, 2020, the 11th meeting of the ministers of the OPEC and non-OPEC countries took place by videoconference. At the meeting, it was decided to extend the June quota until the end of July 2020.”

In May last year, the daily production of crude oil in Azerbaijan amounted to 557,200 barrels, in June – 553,800 barrels, in July – 554,100 barrels. At the second stage, it was agreed to reduce OPEC + daily oil production in August-December 2020 by 7.7 million barrels (18 percent) of the daily production in October 2018.

During this period, Azerbaijan pledged to maintain daily production at 587,000 barrels, reducing it by 131,000 barrels compared to the level of production in October 2018. In August 2020, crude oil production amounted to 584,600 barrels, in September - 585,000 barrels, while in October, November, and December – 587,000 barrels.

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