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S&P Global Ratings: Azerbaijan to increase oil production next year"

25 January 2021 10:05 (UTC +04:00)

In line with Azerbaijan's compliance with the OPEC+ production cut agreement in April 2020, country's daily crude oil production (excluding condensate) will average about 610,000 barrels (bbl) in 2021, broadly in line with the 2020 level, APA-Economics reports citing S&P Global Ratings.

"We expect crude oil production will gradually resume to 2019 levels of 713,000 bbl after April 2022, when the current OPEC+ production deal is terminated. The January 2021 OPEC meeting confirmed the alliance's cautious stance in relation to an increase in production levels in the face of uncertain pandemic developments and their impact on oil demand. Our assumptions are subject to uncertainties in relation to global demand dynamics and how quickly Azerbaijan can return to its full production capacity. Long-term questions have also emerged over the stability of production from the Azeri-Chirag-Gunashli oilfield (Azerbaijan's biggest), which, given its age, has seen a natural decline in output in recent years," the information reads.