BAKU, Azerbaijan, Aug.12
By Leman Zeynalova – Trend:
In 2021, Azerbaijan’s liquids supply is revised down by 20 tb/d, due to lower-than-expected NGLs output in 2H21, and is expected to show growth of 0.02 mb/d for the year to average 0.75 mb/d, Trend reports with reference to OPEC.
In 2022, Azerbaijan’s liquids supply forecast was revised up by 39 tb/d on the back of the incremental production adjustments in the recent DoC decision, and is projected grow by 0.07 mb/d to average 0.82 mb/d.
“Azerbaijan’s liquids production in June rose by 0.04 mb/d to average 0.73 mb/d, up by 0.05 mb/d y-o-y. NGLs production increased by 11 tb/d m-o-m to average 122 tb/d. Azerbaijan’s NGLs output in 1H21 was up by 32 tb/d compared with 1H20 to average 154 tb/d. In the same period, crude oil output decreased by 0.05 mb/d to 0.59 mb/d,” said the cartel.
At the 19th meeting of the ministers of the member countries of the Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC countries, Azerbaijan supported the decision to extend the "Declaration of Cooperation" until the end of 2022, which implies an increase in daily crude oil production by 400 thousand barrels every month in August - December 2021 and a partial adjustment of the base oil production level from May next year.
The new "Declaration on Cooperation" envisages a corresponding increase in daily oil production in Azerbaijan from August to the end of the year, as well as a corresponding decrease in obligations for reductions. From May 2022 until the end of the year, the calculation of Azerbaijan's oil production obligations will continue on the basis of the existing base, that is, the daily crude oil production of 718 thousand barrels per day in October 2018 in our country will remain the basis for determining the production level next year.
Azerbaijan supported this new OPEC + decision, which will help balance the world oil market. The new agreement calls for a reduction from 5.8 million barrels in OPEC + countries to 2 million barrels by the end of 2021.
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