BAKU, Azerbaijan, Oct.8
By Leman Zeynalova – Trend:
Azerbaijan’s oil and gas sector will remain on gradual recovery path well into 2022, Trend reports with reference to Fitch Solutions.
“Azerbaijan’s oil and gas sector suffered considerably due to the collapse in oil prices in 2020 that was brought on by the pandemic. Oil prices fell by an average 33 percent in 2020 and this coincided with Azerbaijan’s daily crude oil production falling to below 650bbl/d for the first time in the history of the series. Production cuts that were agreed upon by the members of the Organization of the Petroleum Exporting Countries (OPEC) had partly to do with the fall in output from Azerbaijan. Indeed, since a gradual easing of these restrictions at end 2020, Azerbaijan’s own oil output has gradually risen to 669.9bbl/d in May 2021 (latest available data),” reads a report released by Fitch Solutions.
Looking ahead, with the expected oil prices to average USD70.0/bbl in 2021 and USD67.0/bbl in 2022 compared to USD43.0/bbl in 2020, the Azerbaijan oil and gas sector will likely remain on a gradual recovery path well into 2022, said the company.
Azerbaijan expressed its support to the decision on increasing daily oil production by 400,000 barrels in November this year made at the 21st Ministerial Meeting of OPEC and non-OPEC countries. The new Declaration of Cooperation envisages an increase in daily crude oil production in Azerbaijan by 7,000 barrels in November to reach 647,000 barrels, while the reduction commitment is 71,000 barrels.
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