OPEC: Oil output in Azerbaijan will fall by 40,000 bpd in 2017

OPEC: Oil output in Azerbaijan will fall by 40,000 bpd in 2017

According to OPEC’s monthly oil market report has recently published, Azerbaijan’s oil supply is anticipated to average 0.85 million barrels per day (bpd), indicating a decline by 10,000 bpd in output in 2016. OPEC also expects decline in oil production in Azerbaijan by 40,000 bpd in 2017 due to a lack of new project start-ups.

June 2016 oil output in Azerbaijan declined by 10,000 bpd compared to May 2016 and increased by 20,000 bpd compared to June 2015 to 0.78 million bpd. June total liquids output dropped by 10,000 bpd to average 0.86 million bpd. The main oil output in Azerbaijan currently comes from the Azeri-Chirag-Guneshli field. This offshore block produces Azeri Light oil with 0.15-percent sulfur content and 35 degrees API.

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Source: State Oil Company of Azerbaijan Republic, 2016

Azerbaijan produced 41.58 million tons of oil and gas condensate in 2015, or 0.8 percent less than in 2014, according to Azerbaijan’s State Statistics Committee. However, the above graph shows that oil output in Azerbaijan has declined year by year starting 2010. Volume of total oil output in 2015 in Azerbaijan was decline by 19.0 % compare with 2010. According to the PSA, oil output in Azerbaijan will continue upcoming years, too. Considering low oil price in the world market, fall in Azerbaijani oil output will intensely decrease income of the country.

© CESD, 2016

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