BAKU, Azerbaijan, Aug.28
By Leman Zeynalova – Trend:
Azerbaijan’s state oil company SOCAR has suspended the unprofitable onshore oil fields of Azneft production union, Ibrahim Ahmadov, deputy head of the public relations and events department at SOCAR, said in response to Trend’s request.
A source in Azerbaijan’s oil and gas market told Trend that Azneft is currently engaged in a total of 45 (25 onshore and 20 offshore) fields in Azerbaijan.
Fourteen fields are currently under development by Azneft.
Earlier, Ahmadov told neftegaz.ru that SOCAR has suspended unprofitable oil fields, as the country is a part of the OPEC+ agreement to curb the oil output.
“Oil production is primarily profitable with April prices for Azerbaijani oil at around $20 per barrel and even lower,” he told neftegaz.ru.
He pointed out that SOCAR intends to comply with the quotas agreed as part of the OPEC+ deal and approved by the government.
“Production cut will enable SOCAR not only stabilize the market, but also increase the operations’ efficiency as a result of suspending the fields, the development of which is unprofitable under the current conditions,” added Ahmadov.
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