Fitch Expects Azerbaijan's Economy to Grow, Increase in Karabakh Recovery Spending in 2021

On December 11, 2024, the President of Azerbaijan, Ilham Aliyev, approved a law on the adoption, approval, and authorization for the implementation of the "Second Appendix to the Agreement of September 14, 2017, on the joint development and shared production of oil from the 'Azeri,' 'Chirag,' and deep-water part of the 'Guneshli' fields (ACG) in the Azerbaijani sector of the Caspian Sea," the official website of the President of Azerbaijan. According to the document, the amendments to the ACG contract now include the development of previously untapped natural gas and liquid hydrocarbons within the geographical boundaries of the ACG contractual territory.

According to operational data, Azerbaijan produced 26.5 million tons of oil (including condensate) from January to November 2024, the monthly report from the Ministry of Energy of the Republic of Azerbaijan. For comparison, in the same period last year, Azerbaijan produced 27.6 million tons of liquid hydrocarbons. Thus, production volumes in the country decreased by 1.1 million tons during the reported period.

From January to November 2024, Azerbaijan produced 45.8 bcm of gas (including volumes injected into oil wells). This represents an increase of 1.8 bcm compared to the same period last year.

Azerbaijan is currently selecting a company to build the country's first industrial battery energy storage system, Deputy Minister of Energy, Elnur Soltanov, told journalists. The state-owned company "Azerenerji" is conducting the necessary work to integrate renewable energy sources with a total capacity of around 2 GW into Azerbaijan's energy system. Currently, eight renewable energy projects with a total capacity of approximately 2 GW are underway in the country. To integrate these capacities into the energy system, the system operator "Azerenerji" is implementing innovations and modernizing the infrastructure, Soltanov noted.