BAKU, Azerbaijan, March 17
By Leman Zeynalova – Trend:
Azerbaijan’s oil output is to recover by 2026 as OPEC+ deal eases, Trend reports citing the International Energy Agency (IEA).
Production is expected to recover also in Azerbaijan and Kazakhstan as OPEC+ output cuts ease, says IEA.
“Later on, regional supplies will be supported by the expansion of Tengiz from 2022 and the start-up of the BP led Azeri Central East platform from 2023. Plans to increase production at the Karachaganak and Kashagan fields remain on hold for the time being,” reads the Oil 2021 report of the agency.
Russia, the other crucial player in OPEC+, could see oil production rise by 700 kb/d over the forecast period, to reach 11.3 mb/d in 2026. Following one of the worst years in the history of the industry, Russian oil production is expected to see a modest increase in 2021 as OPEC+ restrictions remain in place and as producers feel the pinch from higher taxes following reforms approved this year. More substantial increases are expected in 2022 and 2023, as restrictions are lifted allowing shut-in volumes to return. Thereafter, growth will taper off as declines at mature fields overwhelm new project developments. Huge resources in the Arctic, however, could provide a boost to supplies if developed in a timely manner. For now, Russian oil supply is expected to recover to 2019 levels by 2024 and post modest declines thereafter.
Azerbaijan supported the agreement reached at the 14th Ministerial Meeting of OPEC Plus on the continuation of existing quotas on daily crude oil production in April.
According to the new agreement, Azerbaijan's commitment of 123,000 barrels in April this year will remain unchanged as the first quarter of the current year. The daily crude oil production will be kept at the level of 595 barrels. In April, the daily crude oil production cuts of OPEC plus countries will make up 6.9 million barrels.
At the 12th Ministerial Meetings of Organization of Petroleum Exporting Countries (OPEC) and non-OPEC countries, it was agreed to increase the daily crude oil production by 0.5 million barrels in January 2021 and gradually mitigate the quotas up to 2 million barrels in the next months through the Ministerial Meetings of OPEC plus to be held in every month. At the 13th Ministerial Meeting of the OPEC plus countries, it was decided to reduce the daily crude oil production of OPEC plus countries by 7 million and 125,000 barrels in February and by 7 million and 50,000 barrels in March.
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