Azerbaijan has started reducing oil production from today


May 1, Fineko/abc.az. Azerbaijan has started the process of cutting the oil production within the framework of the OPEC+ agreement.

ABC.AZ reports with reference to the Ministry of Energy that for May and June the OPEC+ commitments provide for a reduction in the daily oil production by 9.7 million barrels to 23% from the level of October 2018 and 164,000 barrels for Azerbaijan.

According to information, in October 2018 the daily crude oil production amounted to 718,000 barrels, in July-December Azerbaijan's obligations on this indicator increased by 18% up to 131,000 barrels, in 2021 and April 2022 - 14% and 98,000 barrels.

"In accordance with the New Declaration on Cooperation the quotas for production cuts are distributed in proportion to the volume of production by SOCAR oil & gas producing organizations, as well as oil producers operating under such contracts. Given that in October 2018 the daily oil production on ACG was 567,000 barrels, on Azneft – 125,000 barrels, and on JVs and operating companies – 26,000 barrels. The production is expected to decrease by 23% in May and June of this year, by 18% in July-December, and by 14% in January 2021 - April 2022," the MoE says in the report.