OPEC expects Azerbaijan’s oil supply to average 0.85 million barrels per day (bpd) in 2016, down by 10,000 bpd YoY, the cartel said in its monthly oil market report.
The forecast remained unchanged as compared to the previous monthly oil market report.
Azerbaijan’s oil output decreased by 10,000 bpd to average 0.86 million bpd in June, following a decline of 10,000 bpd in May, according to OPEC.
Nevertheless, total oil production (crude plus natural gas liquids) was pegged at 0.87 million bpd in H1 2016, as in H1 2015, but higher by 20,000 bpd than in H2 2015.
OPEC also expects decline in oil production in Azerbaijan by 40,000 bpd in 2017 due to a lack of new project start-ups.
The main oil output in Azerbaijan currently comes from the Azeri-Chirag-Guneshli field. This offshore block produces Azeri Light oil with 0.15% sulfur content and 35 degrees API.
The contract for the Azeri-Chirag-Guneshli’s development, with proven reserve of nearly 1 billion tons of oil, was signed in 1994.
Azerbaijan’s proven oil reserves amounted to 7 billion barrels at the end of 2015, according to BP’s Statistical Review.
Azerbaijan produced 41.69 million tons of oil and gas condensate in 2015, down by 0.8% YoY, according to Azerbaijan’s State Statistics Committee. (Trend/Business World Magazine)