Azerbaijan fulfills its obligations on OPEC+ deal in December 2020

Azerbaijan has fulfilled its obligations in December on the agreement reached on the reduction of oil production by member states of Organization of Petroleum Exporting Countries (OPEC) and non-OPEC countries by maintaining its production of crude oil at 688,8 thousand barrels, including 587 thousand barrels’ crude oil and 101.8 thousand barrels’ condensate, the Energy Ministry told AzerTag.

“According to the Declaration of Cooperation, Azerbaijan, where oil production amounted to 718 thousand barrels of crude oil per day in October 2018, should maintain the daily crude oil output at 587 thousand barrels by reducing 131 thousand barrels in August-December of the current year. Thus, in December, Azerbaijan fulfilled its commitment under OPEC plus, with an average daily production of 587 thousand barrels of crude oil,” the ministry said.

“The second stage of the “OPEC plus” agreement dated 12 April 2020, which provides for a total reduction of 7.7 million barrels in the daily crude oil output, covers 1 August – 31 December. According to the 12th Ministerial Meeting of OPEC +, it was decided to cut daily crude oil production by 7.2 million barrels by OPEC + countries and 123 thousand barrels by Azerbaijan for January 2021. Thus, in January 2021, the proposed daily oil production for Azerbaijan is identified at the level of 595,000 barrels.

At the 13th Ministerial Meeting of the OPEC + countries on 5 January, it was decided to continue the existing quotas on daily crude oil production in February-March. According to the new agreement, the daily crude oil production of OPEC plus countries will be 7 million and 125 thousand barrels in February and 7 million and 50 thousand barrels in March. Azerbaijan's commitment of 123 thousand barrels in January this year will remain unchanged in February-March. So, in January, February, and March Azerbaijan will increase its daily crude oil production by 8,000 barrels in comparison with December 2020 and keep production at the level of 595,000 barrels,” the ministry added.

News.Az

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