Will oil production decline? - Accounting Chamber`s statement


January 24, Fineko/abc.az. In 2020 production from oilfield block Azeri-Chirag-Gunashli (ACG) in the Azerbaijani sector of the Caspian Sea is expected to reach 186.7 million barrels.

ABC.AZ reports that the data is covered by Accounting Chamber’s conclusion on State Oil Fund’s draft budget for 2020.

The Chamber linked the cause of that with decrease in production at this field in 2020 (versus 2018) and a steeper decline in the gas-oil ratio, along with low main level in the ‘Azeri’ reservoir.

The conclusion says that according to Article 29.2 of the Agreement on joint development and share distribution of production in the Azerbaijani sector of the Caspian Sea at the depths of the Azeri, Chirag and Guneshli fields from 14 September 2017, a total of $3.6 bn will be paid during 2018-2025. Payment of the 2nd part of the bonus amount - $450 million or AZN 765 million is expected in the first month of 2020.

It should be noted that since the first oil production from oilfield block ACG the total production has exceeded 3.6 bn barrels.