CASPIAN OIL & GAS - OPEC reveals forecasts for Azerbaijan’s oil output in 2019

OPEC reveals forecasts for Azerbaijan’s oil output in 2019



Azerbaijan’s oil supply in 2019 will remain unchanged at an average of 0.80 million barrels per day, Trend reports citing OPEC.

“Any increase in Azerbaijan’s production is likely to come from condensate being produced in Shah Deniz and other gas-condensate fields,” the cartel said in its Monthly Oil Market Report (MOMR) for January 2019.

Azerbaijan’s oil supply in the first 11 months of the year grew by a minor 4,000 barrels per day to average 806,000 barrels per day, compared to the same period in 2017, according to secondary sources, while according to data from the Energy Ministry, Azerbaijan produced a daily average of 792,600 barrels per day of crude oil and condensate in 2018, up 2 percent year-on-year, said OPEC.

The report reads that Azerbaijan’s liquids output increased by 0.03 million barrels per day month-on-month to average 0.83 million barrels per day in November, following an increase of 25,000 barrels per day in crude oil production and a 2,000 barrels per day rise in condensate production.

Preliminary crude oil production data indicates a drop of 27,000 barrels per day in December to 0.71 million barrels per day due to production being temporarily offline at the Azer-Chirag-Guneshli (ACG) block of oil and gas fields, the same as in October, said the cartel.

“The country’s liquids supply for 2018 is estimated to remain unchanged at 0.80 million barrels per day and continue at the same annual level in 2019. Liquids production in Azerbaijan is forecast to decrease by 20,000 barrels per day to average 0.79 million barrels per day in 1H19, while for 2H19, an average of output at 0.81 million barrels per day is anticipated,” reads the report.

Azerbaijan submitted data on the daily oil production in the country for December 2018 to the joint technical committee of the OPEC monitoring committee as part of the fulfillment of the Vienna agreement on reduction of oil production.

Oil production in Azerbaijan amounted to 790,000 barrels per day in December 2018, of which 721,000 barrels accounted for oil and 69,000 barrels for condensate.

Thus, 617,000 barrels of oil, 69,000 barrels of condensate and 13,400 barrels of oil products were exported daily.

In 2018, Azerbaijan produced 814,600 barrels per day in January, 806,000 bpd in February, 794,000 bpd in March, 785,700 bpd in April, 801,000 bpd in May, 792,000 bpd in June, 773,000 bpd in July, 774,000 bpd in August, 796,000 bpd in September, 783,000 bpd in October and 801,000 bpd in November.

During a meeting of oil producers in Vienna in December 2016, 11 non-OPEC countries (including Azerbaijan) agreed to reduce oil production by 558,000 barrels per day.

The agreement was concluded for the first half of 2017 and was extended at a meeting on May 25, 2017 until the end of the first quarter of 2018. The agreement was renewed again until the end of 2018 at the recent OPEC meeting in Vienna. Azerbaijan joined the decision.

During the 4th OPEC and non-OPEC Ministerial Meeting, an agreement was reached to increase oil production by one million barrels per day. Azerbaijan supported the new agreement.