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Azerbaijan fulfilled its obligations to OPEC+ in June

09 July 2020 10:30 (UTC +04:00)

Daily crude oil production has been 553.8 thousand barrels in June of this year in Azerbaijan, Ministry of Energy told APA-Economics.

434.7 thousand barrels of the production falls to the share of Azeri-Chirag-Gunashli, while 119.1 thousand barrels to share of SOCAR (Azneft Production Unit (PU), JV and Operation Company (OC).

The report says in the framework of process of reduction by 9.7 mln. barrels of the level of daily oil production recorded in October, 2018 under the OPEC plus agreement, Azerbaijan reduced daily crude oil production by 164.2 thousand barrels in June. Thus, Azerbaijan fulfilled its obligation in the volume of 164 thousand barrels in May.

According to the Cooperation Declaration, Azerbaijan whose daily crude oil production was 718 thousand barrels in October, 2018, should keep the daily crude oil production in the volume of 554 thousand barrels during May, June and July of the current year. In order to fulfill the obligations, the daily crude oil production should be reduced from the levels recorded in October, 2018, i.e. from 567 thousand barrels to 434 thousand barrels at ACG field and from 151 thousand barrels to 120 thousand barrels at SOCAR company (Azneft Production Unit (PU), JV and Operation Company (OC)) and should be kept at the reduced level.

Note that the agreement adopted on April 12, at the 10th meeting of ministers of OPEC plus countries envisages reduction of daily crude oil production during May-June by 9.7 mln. barrels in total and by 164 thousand barrels in Azerbaijan. Meanwhile, at the 11th meeting of ministers of OPEC and non-OPEC countries held on June 6, the decision was made to extend the period of these quotas for one more month i.e. until the end of July.