OPEC keeps oil production outlook for Azerbaijan unchanged

By: Aynur Karimova

OPEC’s outlook on oil production in Azerbaijan in 2015 has remained unchanged.

In its monthly report published on June 10 OPEC said oil production in Azerbaijan will decrease by 30,000 barrels per day and reach 0.82 million bpd in 2015.

In April, oil production in Azerbaijan amounted to 0.86 million bpd, having decreased by 20,000 bpd compared to 2014.

Oil production at the Azeri-Chirag-Gunashli block of fields in the first quarter of 2015 amounted to 0.66 million bpd. BP has stopped the Western Azeri platform in May on a three-week maintenance prevention, the performance of which was at the level of 0.15 million bpd.

Thus, OPEC expects the level of production in June to fall by about 50 million bpd.

OPEC also said in the first quarter of 2015, oil production in Azerbaijan amounted to 0.85 million bpd.

In the second quarter, the cartel expects oil production in the country at 0.87 million bpd, in the third quarter – 0.86 million bpd, in the fourth quarter – at the level of 0.79 million bpd.

Azerbaijan, wholly located within the South Caspian Sea basin, is among the oldest oil producers in the world. The country is one of the Caspian region’s most important strategic export routes to the West.

The country’s largest hydrocarbon basins are located offshore in the Caspian Sea, particularly the Azeri-Chirag-Guneshli (ACG) block of oil and gas fields, which accounted for almost 75 percent of Azerbaijan’s total oil output in 2013.

Similar to its share of total production, ACG also holds over 70 percent of Azerbaijan’s total reserves, with about 5 billion barrels located in this field.

The ACG field is developed jointly with foreign partners.

In the first quarter of 2015, British BP and partners have produced 8 million metric tons (59 million barrels) of oil on the Azeri-Chirag-Gunashli (ACG) block of oil and gas fields, which is similar to the rate in January-March 2014.