Azerbaijan starts fulfilling OPEC+ deal

Economy 15:30 01.05.2020

Azerbaijan kick-started fulfilling its obligations under the OPEC+ deal to curb oil output, according to the country's Energy Ministry, EDNews.net reports citing Vestnik Kavkaza.

According to the ministry, the OPEC + deal obligations for OPEC members of and its allies envision a cut in oil output by 9.7 million barrels per day (bpd) from May through June, or 23% from the level of October 2018, and for Azerbaijan by 164,000 barrels.

The ministry also reported that the country's obligations provide for a reduction in oil output from the level of October 2018 (718,000 barrels per day) from July through December by 18%  or 131,000 barrels, and in April 2021 and 2022 - by 14% or 98,000 barrels.

“In accordance with the new OPEC + Declaration of Cooperation, quotas for the output curb were distributed in proportion to the production volumes of SOCAR’s oil and gas companies and production sharing agreements in our country between oil producers operating under such agreements,” the ministry noted.

“In October 2018, daily oil production at the Azeri-Chirag-Guneshli (ACG) field amounted to 567,000 barrels, at fields operated by Azneft production union – 125,000 barrels, and at fields operated by the joint ventures and operating companies – 26,000 barrels. From May through June of the current year, a decrease by 23% is expected, from July through December - by 18%, and from January 2021 through April 2022 - by 14%,” the ministry also noted.

“At the same time, it should be noted that these figures are rounded up, since the conversion rates of tons / barrel of oil from different producing wells differ, and a decrease in the volume of condensate is not included in the obligations," the ministry said.

Minister of Energy Parviz Shahbazov stated that measures to curb the daily production at the Azeri-Chirag-Guneshli field, the fields of Azneft production union, joint ventures and operating companies will contribute to the fulfillment of Azerbaijan’s obligations.

“From today in the history of the world oil industry, there starts implementation of the first major agreement on the volume and timing of production. Global oil demand is expected to fall by 15–25 million barrels per day in the second quarter of this year and by 10.3 million barrels in total for the year,” he said.

“In this situation, the fulfillment of OPEC + commitments, including Azerbaijan, will provide initial support to the oil market. The results of solidarity demonstrated at the national and global levels to stabilize the oil market will gradually affect oil prices," Shahbazov noted.

In accordance with the obligations under the agreement of the OPEC + countries, Azerbaijan should maintain the daily crude oil production from May through June of the current year at the level of 554,000 barrels, and from July through December – 587,000 barrels, in April 2021-2022 – 620,000 barrels.

Azerbaijan takes measures to turn Khankandi into safe city - VİDEO

News line

Armenia officially announces freezing its participation in CSTO
09:50 29.03.2024
US hopes to return to purchase of 72 fighter jets per year amid budget cuts
09:38 29.03.2024
Another 138 IDPs leave for Fuzuli
09:28 29.03.2024
Netanyahu: "We have strategic assets of Hamas"
09:17 29.03.2024
Date of next meeting of Armenian and Azerbaijani Parliament Speakers announced
09:00 29.03.2024
Russia prepares for new offensive in May-June l – says Zelensky
23:52 28.03.2024
Russian investigators have evidence of Ukraine link to Crocus terrorists
22:24 28.03.2024
Committee members of the EU Council will visit the South Caucasus region
19:48 28.03.2024
Bayern to pay Thomas Tuchel 12M euro compensation
Bayern to pay Thomas Tuchel 12M euro compensation
19:00 28.03.2024
Crocus City Hall terrorists took drugs before attack - law enforcement agencies
Crocus City Hall terrorists took drugs before attack - law enforcement agencies
18:33 28.03.2024
Azerbaijan, UN Development Program mull future co-op
18:00 28.03.2024
An Independent Trade Union Established within International Eurasia Press Fund - First in NGO sector - PHOTOS
17:39 28.03.2024
Italian PM condemns Macron for idea of sending troops to Ukraine
Italian PM condemns Macron for idea of sending troops to Ukraine
17:23 28.03.2024
Azerbaijan lends clarity to color requirement for taxis
17:02 28.03.2024
Isaac Herzog: Israel has no greater friend than US, and US has no greater friend than Israel
Isaac Herzog: Israel has no greater friend than US, and US has no greater friend than Israel
16:45 28.03.2024
Nigerian army eliminates over 200 militants in 2 weeks
16:30 28.03.2024
Armored Vehicle Coalition for Ukraine launched in Poland
Armored Vehicle Coalition for Ukraine launched in Poland
16:15 28.03.2024
Russia strengthens transport security measures after terror attack at Crocus City Hall
Russia strengthens transport security measures after terror attack at Crocus City Hall
15:55 28.03.2024
Türkiye plays an important role between Russia and Ukraine - says political scientist Ismail Cingoz
15:45 28.03.2024
2 schoolchildren detained in France on suspicion of sending bomb threats
15:35 28.03.2024
Ski resort in Georgia hit by avalanche
Ski resort in Georgia hit by avalanche
15:26 28.03.2024
Another protest against French colonialism held in New Caledonia, Azerbaijani flag raised
Another protest against French colonialism held in New Caledonia, Azerbaijani flag raised
15:15 28.03.2024
Media: US did not transfer all information about terrorist attack in Crocus City Hall to Russia
15:00 28.03.2024
Movement ‘Together’ calls on Armenia’s parliamentary forces to express vote of no confidence in Pashinyan
14:41 28.03.2024
Azerbaijan to participate in international trade fair in Istanbul
Azerbaijan to participate in international trade fair in Istanbul
14:32 28.03.2024
Le Pen accuses French government of fraud
14:22 28.03.2024
Armenian Government Grapples with Internal Division on Village Return Issue - Ishkhan Verdiyan talks on Ednews
14:12 28.03.2024
Ammunition found along route of Crocus City Hall terrorists
Ammunition found along route of Crocus City Hall terrorists
13:41 28.03.2024
Expert Ilyas Huseynov Predicts Peaceful Return of these territories to Azerbaijan
13:20 28.03.2024
Azerbaijan weather forecast for March 29
Azerbaijan weather forecast for March 29
12:55 28.03.2024
Russian MFA concerned about upcoming Armenia-US-EU meeting
12:23 28.03.2024
Secret Points of Pashinyan's Meeting with French Representative: Is Peace Agreement Signing Imminent?
12:00 28.03.2024
Armenia announces recruitment of border guards to work at Zvartnots
Armenia announces recruitment of border guards to work at Zvartnots
11:47 28.03.2024
The US-Armenia-EU Joint Conference is a part of the pressure plan on Azerbaijan - MP Konul Nurullayeva
11:30 28.03.2024
Azerbaijan’s central bank reduces discount rate
Azerbaijan’s central bank reduces discount rate
11:23 28.03.2024
CSTO chief: ‘Yerevan doesn’t participate in our work, but there are no statements about suspension’
11:13 28.03.2024
Ammunition found in Khankandi
Ammunition found in Khankandi
11:00 28.03.2024
Russia had been aware of preparation for terrorist attack at Crocus - says intelligience chief
10:46 28.03.2024
Scholtz reveals date of his last telephone conversation with Putin
Scholtz reveals date of his last telephone conversation with Putin
10:33 28.03.2024
Head of the SSS: France is inciting Armenia to a new war
10:21 28.03.2024
Hamısı