Today.Az » Business » OPEC changes forecast for Azerbaijan's daily oil production for 2021
20 September 2020 [12:06] - Today.Az
By Ayya Lmahamad
OPEC has changed its forecast for average daily oil production in Azerbaijan for 2021.
OPEC Monthly Oil Market reported in its September issue, that the average daily oil production of oil and other hydrocarbons in Azerbaijan will be at 0.71 million barrels, with a decline by 0.01 million barrels compared to August.
Moreover, the forecast of average daily oil production in 2020 stays stable at 0.72 million barrels.
Earlier it was reported that the Organization of Petroleum Exporting Countries (OPEC) has increased the assessment of confirmed gas reserves in Azerbaijan to 1.718 billion cubic meters in 2019, which is by 19.7 percent more than in 2018.
Moreover, according to OPEC's report, proven crude oil reserves in Azerbaijan are estimated at 7.000 million barrels in 2019, production at 678,500 b/d, while exports of crude oil and petroleum products amounted to 559,300 b/d.
It should be noted that in April 2020, OPEC and non-OPEC countries entered into agreement on reduction of daily oil production by 9.7 million barrels in May-June and 164,000 barrels for Azerbaijan.
Thus, according to the “Declaration on Cooperation”, Azerbaijan produced 718,000 barrels of crude oil per day in October 2018, while in May-July 2020, the country had to maintain the average daily production of crude oil at 554,000 barrels.
On July 31, the first phase of the OPEC+ agreement of April 12 to reduce daily oil production by 9.7 million barrels was completed.
In the second phase of the agreement, covering the period from August 1 to December 31, the daily production of crude oil in OPEC+ countries will be reduced by 7.7 million barrels, which is 18 percent less than in October 2018.
During this period, Azerbaijan must reduce daily crude production by 131,000 barrels and keep it at 587,000 barrels. Thus, during this period Azerbaijan's restrictions on daily production of crude oil will be reduced by 33,000 barrels compared to the previous three months.