Major events in Caspian countries' oil and gas industry for last week (Dec. 12-16)

Analysis Materials 20 December 2016 15:26 (UTC +04:00)

Azerbaijan’s 2017 oil output forecast in line with OPEC cut

Azerbaijan’s oil output forecast for 2017 is in line with the agreement on oil output cut that was reached by OPEC and non-OPEC countries in Vienna, the country’s Energy Ministry said.

“Average daily oil output in Azerbaijan, taking into account the Vienna agreement, will be 800,000-807,000 barrels in 2017, while this volume is 842,000 barrels this year,” said the ministry. “In general, the expected cut in production in line with OPEC decision was taken into account in forecasts and in the draft state budget for 2017.” The Azerbaijani government forecasts oil output at about 39.797 million tons in 2017, that is, 3.7 percent less than in 2016. It is worthy to note that twelve non-OPEC states agreed to cut oil production totally by 612 thousand b/d at the Vienna meeting on December 10, from which Azerbaijan’s share is 35 thousand b/d.

Iran to give 7 upstream oil projects to Russian companies

Iran plans to assign development of seven oil fields to Russian companies, Iranian Oil Minister Bijan Zanganeh said. He said that Russian companies would develop and increase the recovery rate of the fields. Iran’s oil fields’ recovery rate is about 25 percent averagely, but some of giant fields like Yadavaran and Azadegan have about 6-7 percent recovery.

Iran has already signed memorandum of understandings with Lukoil on studying Ab-Teymour and Mansouri fields which contain over 5 billion barrels of recoverable reserves.

Zanganeh said that Iran has signed MoUs with Russian Zarubezhneft on West Paydar and Aban oil fields as well as Tatneft on Dehloran iol field. All of the mentioned fields are among the 49 fields which Iran offered to foreigners based on the newly designed model contracts, called the Iran Petroleum Contract or IPC.