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Azerbaijan fulfills over 98% of its obligation to OPEC+ in May

09 June 2020 12:44 (UTC +04:00)

Azerbaijan produced 557.2 thousand barrels of crude oil per day in May, while the country’s daily oil (including condensate) production was 650 thousand barrels in May, 2020, the Ministry of Energy told “APA-Economics”.

Of which crude oil made up 557,2 thousand barrels, while condensate made up 92.8 thousand barrels. Some 437.6 thousand barrels of the total 557.2 thousand barrels of crude oil were extracted from Azeri-Chirag-Guneshli field, while 119.6 thousand barrels were produced by SOCAR company (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 160.8 thousand barrels in May. Thus, Azerbaijan fulfilled over 98% of 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.