According to the government forecasts, which were submitted to the Azerbaijan parliament together with the budget, after five years oil and condensate production in the country will drop to 39,736,000 tons.
The forecast does not disclose how much oil the companies will extract. Turan agency found out that production of condensate from the Shah-Deniz Phase 2 will total 2.5 million tons and State Oil Company of Azerbaijan (SOCAR) together with other partners of the production sharing agreements (PSA) plan to extract 7 million tons of oil. BP-Azerbaijan company – the main oil producer - plans to extract 30,236,000 tons.
In 2012 Azerbaijan extracted 42.9 million tons of oil and this year it expects to produce 42.5 million tons.
The specialists polled by Turan agency doubted that after five years production rate will be maintained at about 40 million tons a year (800,000 barrels a day). They said that the forecasts show that if huge capital is not invested into the Azeri-Chirag-Guneshli (ACG) project stabilization, there will be decline after 2015 and the production could be maintained at 550,000 barrels a day (27.5 million tons a year).
As far as production by State Oil Company of Azerbaijan (SOCAR) is concerned, from 2014 to 2016 SOCAR plans to drill about 140 operation wells on its offshore fields. However, the wells will be effective during 1-2 years, then they will be watered and the production will start declining, because all these wells are old and they are under operation over 30-40 years. Therefore, after five years SOCAR will have production decline, instead of rise.—0---
Economics
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Elon Musk, co-chair of the U.S. Department of Government Efficiency (DOGE), has outlined a strategy to bring inflation in the United States down to zero by 2026 through aggressive cuts in federal spending. Musk’s plan, which aims to reduce approximately $4 billion in projected daily expenditures, is designed to shrink the federal deficit to $1 trillion by 2026. While the deficit would still be substantial, Musk argues that accelerated economic growth could offset inflationary pressures, ultimately stabilizing the economy.
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The State Oil Company of Azerbaijan (SOCAR) has signed an agreement with Union Energy to acquire a 10% equity stake in the Tamar gas field, one of the largest offshore gas The State Oil Company of Azerbaijan (SOCAR) has signed an agreement with Union Energy to acquire a 10% equity stake in the Tamar gas field, one of the largest offshore gas projects in the Mediterranean, SOCAR said in a statement on Wednesday.projects in the Mediterranean, SOCAR said in a statement on Wednesday.
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On January 30, Azerbaijani President Ilham Aliyev has signed a decree approving the State Program for the Improvement of Transport Infrastructure in Baku and Surrounding Areas for 2025-2030, aiming to modernize the capital’s urban mobility and reduce congestion, the presidential press service said on Tuesday.
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Goldman Sachs has revised its oil price forecasts, raising its projections for Brent and Azeri Light crude by $2 per barrel for both 2025 and 2026, setting the estimate at $78 per barrel. The adjustment reflects expectations of tighter supply conditions driven by geopolitical risks, including U.S. sanctions affecting Russian oil production and potential future restrictions on Iranian crude exports.
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