By Ofeliya Afandiyeva
Azerbaijan will reduce its daily oil production by additional 7,000 barrels to meet OPEC’s new requirements with regards to oil output, local media has reported.
The country joined OPEC’s decision to reduce daily oil production by more than 500 thousand barrels in the first quarter of 2020, during the consensus reached at the 7th OPEC and non-OPEC Ministerial Meeting in Vienna on December 6.
To meet OPEC requirements, Azerbaijan must maintain the daily production at 769,000 barrels from January 2020.
OPEC+ has increased the commitment to reduce daily oil production to 1.7 million barrels. The allocation of additional volumes regarding with the reducing of production has been conducted proportionally among OPEC+ countries.
Accepting the consensus of oil production cuts, Azerbaijan aims to support the process of regulation of world oil market.
“To ensure balance and stability in the market is the main goal of our cooperation. Azerbaijan is interested in participating in this cooperation as a country that has supported all initiatives so far within the OPEC+. We believe that as OPEC+ countries, we should continue our loyalty to our solidarity and commitments,” Azerbaijani Energy Minister Parviz Shahbazov said in an address to the OPEC meeting.
Azerbaijan reduced its daily oil production by 20,000 barrels since January 2019, within the OPEC+ consensus that prescribed to maintain daily oil output at 776,000 barrels.
Thus, in January-September 2019, Azerbaijan implemented its oil production obligations under OPEC+ agreement by 145 percent.
Azerbaijan’s oil production decreased to 718,000 barrels in October 2019. Some 644,000 barrels of it were crude oil and 74,000 barrels – condensate.
For comparison, the average daily oil production in Azerbaijan amounted to 792,600 barrels in 2018.
According to the Declaration on Cooperation signed on December 7 in 2018, the countries of the cartel are obliged to cut oil production by 800,000 barrels per day, and non-OPEC countries – by 400,000 per day.
Following the 6th OPEC and non-OPEC Ministerial Meeting, held in Vienna on July 2 this year, the agreement on limiting oil production was prolonged until the end of the first quarter of 2020.
Addressing the meeting, OPEC Secretary General Mohammad Sanusi Barkindo said that the member countries could be proud of this historic milestone. He highly appreciated the activities of all countries participating in the Declaration on Cooperation.
The 8th OPEC and non-OPEC Ministerial Meeting also will convene again in Vienna on June 10 in 2020.
It would be worthy to add that OPEC+ refers to the alliance of crude producers, who have been undertaking corrections in supply in the oil markets since 2017. Currently, there are 21 sovereign producing nations complying with the alliance’s decisions, with Saudi Arabia leading the 11 OPEC members party to the deal and 10 non-OPEC members led by Russia.
Furthermore, the 35th meeting of the Joint Technical Committee (JTC) of the Organization of the Petroleum Exporting Countries (OPEC) has been held in Vienna as well.
The OPEC JTC has been operating since 2016 with the key objective of providing stability to global oil markets.
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