Azerbaijan's oil production for 9 months down 4.8%, says ministry
Azerbaijan’s oil production fell by 4.8% in the first nine-month period of 2024 to 21.6 millions metric tonnes, down from 22.7million metric tons one year ago, said Energy Minister Parviz Shabazov on Monday.
He didn't explain the cause of the decline.
Production of oil in Azerbaijan has been declining for several years as the output at Azeri-Chirag-Gunashli complex of offshore oilfields, operated by BP, has passed its peak.
Azerbaijan belongs to the OPEC+, a group of major oil producers that has reduced oil production in order to stabilize energy markets.
Azerbaijan increased its oil production to 488,000 barrels a day (bpd), up from 482,000 bpd, according to a report released by the Organization of the Petroleum Exporting Countries on Monday.
This is below the 551,000 bpd production quotas for 2024-2025 that the OPEC+ agreement set.
Azerbaijani minister says oil exports dropped from 19 million tonnes last year to 17,9 million tons in the period January-September.
According to the Minister, gas exports to Europe increased to 9.4 billion cubic metres during this period from 8.6 billion cubic metres a year ago.
Shahbazov stated that the total amount of Azerbaijani gas exports rose to 18,4 billion cubic meters from 17,8 billion cubic meters in 2023.
Azerbaijani natural gas exports are in the spotlight in Europe because of an expiring deal on Russian gas transit through Ukraine after December 31st this year.
Ukraine has announced that it will not be extending the agreement with Russia which sent thousands troops to the neighbouring country on February 20, 2022.
Azerbaijan, the European Union and Ukraine asked Azerbaijan for assistance in facilitating discussions with Russia regarding the transit agreement.
The EU is also looking at Ukraine as a source of gas to replace the Russian volumes that have been significantly reduced due to the fallout of the conflict in Ukraine.
It could take Azerbaijan years to increase its gas production. (Reporting and editing by Bernadette B. Baum, Emelia Sithole Matarise.
(source: Reuters)
