BAKU, Azerbaijan, June 21
By Leman Zeynalova - Trend:
The Southern Gas Corridor, which came online in late 2020 by transporting Azerbaijani gas to Europe, will mitigate the expected decline in the country’s oil output this year, Trend reports with reference to the International Monetary Fund (IMF).
“GDP growth is projected to pick up to 2.3 percent in 2021, as the sectors affected by stringent lockdown re-open. The new Southern Gas Corridor pipeline will boost exports of natural gas, mitigating the decline in oil production. Inflation is projected to increase moderately to around 4 percent. Following a sharp widening in 2020, consolidated budget deficit is projected to remain high at 5.6 percent of GDP, owing to continued COVID-19 spending and increased reconstruction spending, before starting to narrow in 2022. Higher oil prices should improve the current account, turning it to a surplus of 2.4 percent of GDP, from a small deficit in 2020,” reads the IMF report.
Earlier, OPEC said that for 2021, year-on-year growth of 0.06 million barrels per day is anticipated in Azerbaijan, amid developments of the Shah Deniz field.
The daily oil production (with condensate) in Azerbaijan amounted to 674,000 barrels in May 2021, according to the Azerbaijani Ministry of Energy.
Around 586,000 barrels of this volume accounted for crude oil while 88,000 barrels for condensate.
The average daily production of crude oil in Azerbaijan will be maintained at 603,000 barrels in May, 610,000 barrels in June and 620,000 barrels in July in accordance with the latest OPEC+ decision.
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