IEA: Azerbaijan's oil production to stand at 0.7m barrels

The International Energy Agency (IEA) has forecasted Azerbaijan’s oil production to stand at 0.70 million barrels per day in 2022, unchanged from the previous report, Trend has reported.

The Agency forecasts the country’s oil output at 0.70 million barrels per day in the first quarter and 0.69 million barrels per day in the second and third each. It should be noted that no data is available for the fourth quarter of the year.

Moreover, the Agency estimated that Azerbaijan’s oil output stood at 0.70 and 0.69 in the first and second quarters of 2021, as well as at 0.71 million barrels per day in the third and fourth each.

Since April 2020, OPEC and non-OPEC countries have agreed to reduce the volume of daily oil production.

Azerbaijan supported the decision to increase daily crude oil output by 400,000 barrels per month from August to December 2021, and to extend the Declaration of Cooperation until late 2022, with partial adjustments to the base level of oil production beginning in May next year, at the 19th Ministerial Meeting of OPEC and non-OPEC countries.

That Declaration of Cooperation envisages increasing Azerbaijan's daily crude oil production volume every month from August to the end of the year while reducing the obligations related to cuts.

Furthermore, from May 2022 to the end of the year, Azerbaijan's oil production obligations will be calculated using the existing base. In other words, Azerbaijan's 718,000 barrels per day of crude oil production in October 2018 will serve as the baseline for determining output levels next year.