The US Energy Information Administration (EIA) predicts a further decline in oil production in Azerbaijan - if last year it averaged 890 thousand, this year it is expected to be 870,000 and in 2017 - 860 thousand barrels per day.
According to the forecast published in the January short-term energy market review, from January to July 1, oil production will amount to 880 thousand and before the end of the year it will be 870,000 barrels per day.
Recall, the bulk of Azeri Light oil with a sulfur content of 0.15% is extracted from the block of offshore fields Azeri-Chirag-Guneshli (ACG).
The Contract of the Century on ACG was signed in 1994 with the primary equity participation of the operator BP at 35.78%.
According to BP, the proven oil reserves in Azerbaijan in January of last year amounted to 7 billion barrels. --17D-
Economics
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Azerbaijan’s economy, which is heavily dependent on oil revenues, faces a stark warning in the 2021 report by Carbon Tracker titled “Beyond the Oil States: The Urgent Need to Reduce Dependence on Oil in the Context of the Energy Transition.” The report ranks Azerbaijan among the most vulnerable oil-dependent countries, placing it in the "5th group" — a category reserved for nations expected to experience a decline in oil and gas revenues exceeding 40% over the next decade. This group includes Angola, Bahrain, Timor-Leste, Equatorial Guinea, Oman, and South Sudan, highlighting shared economic risks for these states.
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Azerbaijan's non-oil and gas exports rose 3.5% year-on-year to $2.8 billion during the first ten months of 2024, the Center for Analysis of Economic Reforms and Communication (CAERC) reported in its November "Export Review."
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Azerbaijan Railways CJSC (ADY) will modify the schedules for commuter and domestic trains in line with the Cabinet of Ministers' decision to adjust work and rest days in November, aiming to ensure safe and comfortable travel during the COP29 event, the company announced.
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In Azerbaijan, the government has increasingly relied on tax exemptions for imported goods as a tool to stabilize domestic market prices. The exemption from the 18% VAT on wheat imports, extended this year, exemplifies this approach. New measures have also been introduced, including tax relief on imports of electric vehicle chargers, while exemptions for high-cost medications are currently under discussion. Notably, defense imports continue to be free from taxes and customs duties.
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