Gas production in Azerbaijan declines because of oil decline

In January 2013 Azerbaijan extracted 1.5 billion cub.m. of tank gas.

According to the monthly report of the Azerbaijan State Statistical Committee, tank gas production declined by 6.25% against January 2012 or by 100 million cub.m.

According to the State Statistical Committee, in January 2012 Azerbaijan produced 1.6 billion cub./m. of gas, down 400 million cub.m. against the same period in 2011.

Why does volume of tank gas production go down? A source from the Azerbaijan Centre of Oil Studies reported that this is most likely linked to the oil production decline. The share of associated gas is very high in Azerbaijan. Its specific weight in total volume of extracted gas makes about 55-60%. According to the State Statistical Committee, in January 2013 oil production in the country dropped by 2.5% or by 100,000 tons.

The Centre reminded that BP-Azerbaijan company is the biggest maker of associated gas. According to SOCAR’s official information, during 2011 (the audited data of 2012 was not made public yet) out of

25.75 billion cub.m. of gas produced in the country 11.94 billion cub.m. falls to BP-Azerbaijan (46.4%). It receives associated get while extracting oil on the offshore bloc Azeri-Chirag-Guneshli (operated by BP).—0—