BAKU, Azerbaijan, January 11. The oil production decline rate in Azerbaijan from 2024 through 2027 will decrease thanks to the commencement of oil production this year under the Azeri Central East (ACE) project, an informed source in the government told Trend.
In 2023, the country produced 30.2 million tons of oil, a 7.4 percent fall from 2022, owing to a drop in production from the major Azeri-Chirag-Gunashli (ACG) block of fields.
Meanwhile, 17.8 million tons of oil were taken from the ACG, a 12.7 percent drop year on year due to natural reservoir depletion.
"The first oil is expected to be produced in the first quarter of this year from the new ACE platform in the ACG block, which will help reduce the overall decline in production in this crucial oil field in the Azerbaijani sector of the Caspian," the source noted.
ACE will yield 100,000 barrels of oil per day.
Besides, condensate production is expected in 2024 at the Shah Deniz field, totaling more than 4.5 million tons, which is also included in the overall oil production figures for the country as a liquid hydrocarbon.
"Thanks to this, the total oil production in the country will be around 29.5 million tons in 2024, meaning a significant decrease in the decline rate, and this is crucial as oil is an important export product for Azerbaijan," the source emphasized.
According to the source, during 2025–2026, production may remain at the level of 28–28.5 million tons per year, and in 2027, it is expected to be around 27 million tons.
Azerbaijan's Minister of Economy and Chairman of the Supervisory Council of SOCAR, Mikayil Jabbarov, on November 2, 2023, during a meeting of the Azerbaijani parliament commission, noted that oil production on the main block, Azeri-Chirag-Gunashli, will decrease in the medium term, affecting the overall oil production indicator in the country.
Oil production at the ACG has been ongoing since 1997. The reserves of the ACG amount to one billion tons of oil (more than half of which has already been extracted).