How Correct Are OPEC Forecasts for Oil Production in Azerbaijan?
Azerbaijan's oil production in 2016 is expected at an average of 870,000 barrels per day, according to the OPEC report on the oil market.
OPEC forecasts remained unchanged compared with the previous report and showing a slight increase by 10,000 barrels per day compared to 2015.
Oil production in Azerbaijan in August decreased by 30 thousand barrels per day to 860 thousand barrels, the report said.
Turan IA notes that according to the State Statistics Committee of Azerbaijan, in August 2016 Azerbaijan daily produced 111.56 million tons of oil and condensate, or about 826 thousand barrels of crude. That is, OPEC increased its figures for oil production in Azerbaijan by 4% or by 34,000 barrels per day.
According to OPEC, in the I half of 2016, oil production in Azerbaijan amounted to 870,000 barrels per day, which is similar to the I half of 2015, but 20,000 barrels more than in the second half of last year.
However, according to the State Statistics Committee of Azerbaijan, in the first half of this year the country produced 21 million 64.5 thousand tons of oil, equivalent to the production of 856.5 barrels of crude per day.
Turan IA stressed that “if we believe annual forecasts - 870 thousand barrels per day,” in the current year in Azerbaijan the production volumes should be at the level of 318.42 million barrels, or 43.03 million tons.
However, in September the volume of production in the country began to decline, as the production on the Deepwater Gunashli platform was completely suspended for 11 days, and the daily production there amounted to 136,000 barrels. In early November the platform Eastern Azeri will be suspended for repairs, and it daily produces 70,000 barrels of oil.
According to Turan’s data from oil-related circles, while in H1 of 2016 the contract area Azeri-Chirag-Gunashli produced 655,000 barrels of oil daily, then by December this figure will amount to 630-635 thousand barrels.
The oil production in Azerbaijan is expected to reach 900 thousand barrels per day in the I quarter of 2017 and 800,000 barrels per day in the II, III and IV quarters of 2017.
Turan IA recalls that 75% of oil produced in Azerbaijan comes from the block of offshore fields Azeri-Chirag-Guneshli. -12A--
Economics
-
On July 26, the Ministry of Economy hosted a meeting with entrepreneurs from the non-oil industry to explore ways to stimulate local production and enhance export potential.
-
Azerbaijani internet service providers Aztelekom and Baktelekom will introduce substantial changes to their pricing structure starting August 15, the companies announced today. Under the new tariffs, the minimum internet speed will rise to 100 Mbit/s, with the cost per Mbit/s decreasing from 0.45 AZN to 0.25 AZN. As a result, monthly charges will be set at 25 AZN for 100 Mbit/s, 30 AZN for 150 Mbit/s, and 36 AZN for 250 Mbit/s.
-
Independent experts suggest that Azerbaijan may be on the verge of another devaluation of its currency, the manat, due to a shrinking trade and payment surplus. The anticipated economic adjustments come amidst a decline in foreign currency inflows and reduced oil production.
-
Azerbaijan’s Foreign Minister Jeyhun Bayramov met today with Ahmed Moallim Figi, the Minister of Foreign Affairs and International Cooperation of Somalia, at the Azerbaijani Foreign Ministry. This meeting followed a discussion held the previous day between Figi and Azerbaijan’s Economy Minister Mikail Jabbarov.
Leave a review