Azerbaijan: OPEC+ may consider oil reduction rollover at the Dec. 1 meeting
Parviz Shahbazov, Azerbaijan’s Energy minister, said that OPEC+ could decide to keep its current oil production cuts in place as of Jan. 1, at their next meeting on Sunday. The group has already delayed increases due to demand concerns.
Azerbaijan belongs to the OPEC+ Group, which also includes the Organization of Petroleum Exporting Countries (OPEC) and its allies, such as Russia. This group will meet on December 1.
OPEC+ has already postponed a plan for a gradual increase in production this year by several months due to falling prices, weaker demand, and increased production outside of the group.
Last week, three OPEC+ sources who were familiar with the discussions said that they may again delay output increases when they meet on Dec. 1, due to the weak global demand for oil.
Shahbazov told Baku that the issue of continued oil production cuts could be raised at the meeting.
He said Azerbaijan hopes to maintain production until 2030, despite the fact that oil production has decreased since 2010.
Azerbaijan's oil output has been declining for several years after the Azeri-Chirag-Gunashli complex of offshore oilfields operated by BP passed its peak of 50 million metric tons, or 1 million barrels per day, in 2010.
Shahbazov said that oil production in 2024 and 2025 will be 29 million tonnes per year or 580,000 barrels per day.
He said that Azerbaijani gas exports will average 12,5 billion cubic metres a year to Europe in 2024-2025.
Minister said that the country is expecting its gas production this year to be 50 billion cubic meters, with 25 billion cubic metres being exported. The output of gas is expected to increase to 50 bcm next year. Exports are expected to remain stable.
Azeri Presidential Advisor Earlier This Year An Azeri Presidential advisor said that the European Union (EU) and Ukraine asked Azerbaijan for facilitation of discussions with Russia about gas transit through Ukraine.
Shahbazov declined to reveal the details of consultations but was skeptical about the prospects for the talks. He said, "I'm not sure what will happen."
The current five-year agreement between Moscow and Kyiv regarding Russian gas exports through Ukraine to Europe expires this year, and Kyiv says it will not extend it.
SPP, the state-owned gas company in Slovakia, said that European companies were not close to a deal for Azerbaijan gas to replace Russian imports through Ukraine.
The minister said that the percentage of Azerbaijan's green energy generation is expected to increase to 33% by 2027, from the current level of around 20%.
(source: Reuters)
