BAKU, Azerbaijan, August 11. For 2022, liquids supply in Azerbaijan is forecast to grow by 39 tb/d y-o-y to average 0.8 mb/d, down by 8 tb/d, because of lower-than-expected production in the major oil fields in 2Q22, Trend reports citing OPEC.
Azerbaijan has been reducing oil output every month as part of the OPEC+ deal. The country overfulfills production quotes each month under this agreement. Azerbaijan’s daily oil production for September is set at 718 000 barrels, as the 31st OPEC and non-OPEC Ministerial Meeting decided to adjust upward the production level for OPEC+ by 0.1 mb/d for the month of September 2022.
This adjustment does not affect the baselines decided on the Meeting on 18 July 2021. The meeting participants reaffirmed the decision of the 10th OPEC and non-OPEC Ministerial Meeting on 12 April 2020 and further endorsed in subsequent meetings including the 19th OPEC and non-OPEC Ministerial Meeting on the 18 July 2021.
OPEC says in its latest report that Azerbaijan’s liquids supply for 2023 is forecast to decline by 60 tb/d for an average of 0.7 mb/d. The overall decline rate will be higher than the planned ramp-ups in the three major producing fields, according to the cartel.
“Azerbaijan’s liquids production in June declined by a minor 7 tb/d m-o-m to average 0.7 mb/d, and was down by 27 tb/d y-o-y. Crude production decreased by 9 tb/d m-o-m to average 562 tb/d, while NGL output averaged at 150 tb/d, according to official sources. No new projects are expected to come online in the country in 2022, and the main declines in the legacy fields are expected to be offset by ramp-ups in other fields, such as Shah Deniz Phase 2,” the report says.
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