Azerbaijan to see decline in oil supply, OPEC says

/By AzerNews/

By Aynur Karimova

Azerbaijan, the second largest oil producer in the former Soviet Union with proven crude oil reserves estimated at 7 billion barrels, will see a decline in oil supply 2015.

In its May report OPEC said the decrease will amount to 30,000 barrels per day and stand at average 0.82 million bpd in 2015.

"On a quarterly basis, Azerbaijan’s oil output is estimated to average 0.85 million bpd, 0.87 million bpd, 0.86 million bpd and 0.79 million bpd, respectively," the organization said.

OPEC also noted the country’s oil supply registered an average of 0.85 million bpd, indicating a decline of 30,000 bpd in 2014.

On a quarterly basis, Azerbaijan’s oil output is estimated to average 0.85 million bpd, 0.87 million bpd, 0.86 million bpd and 0.79 million bpd, respectively.

Azerbaijan, wholly located within the South Caspian Sea basin, is among the oldest oil producers in the world. The country is one of the Caspian region's most important strategic export routes to the West.

The country's largest hydrocarbon basins are located offshore in the Caspian Sea, particularly the Azeri-Chirag-Guneshli (ACG) block of oil and gas fields, which accounted for almost 75 percent of Azerbaijan's total oil output in 2013.

Similar to its share of total production, ACG also holds over 70 percent of Azerbaijan's total reserves, with about 5 billion barrels located in this field.

The ACG field is developed jointly with foreign partners.