Daily oil production in Azerbaijan amounted to 557.2 thousand barrels in May

In May 2020, daily oil production in Azerbaijan amounted to 650 thousand barrels. Of which crude oil made up 557.2 thousand barrels, while condensate made up 92.8 thousand barrels. "Azeri-Chirag-Guneshli" accounted for 437.6 thousand barrels out of 557.2 thousand barrels of crude oil while SOCAR (Azneft PU, JV and Affiliated Companies) for 119.6 thousand barrel.

Within the process of reduction by 9.7 mln. barrels of the level of daily oil output recorded in October, 2018 under the OPEC plus agreement, Azerbaijan cutted daily crude oil output by 160.8 thousand barrels in May.  Thus, Azerbaijan fulfilled over 98% of its obligation in the volume of 164 thousand barrels in May.

According to the ”Declaration of Cooperation", Azerbaijan, where oil production amounted to 718 thousand barrels of crude oil per day in October 2018, should maintain the daily crude oil output at 554 thousand barrels in May-July of the current year. In order to fulfill the commitments, the daily crude oil production should be reduced from the levels recorded in October, 2018, i.e. from 567 thousand barrels to 434 thousand barrels at ACG field and from 151 thousand barrels to 120 thousand barrels at SOCAR company (Azneft Production Unit (PU), JV and Operation Company (OC)) and should be kept at the reduced level.  

It should be noted that the deal adopted at the 10th Ministerial Meeting of OPEC plus countries on April 12, envisaged cuts in daily crude oil output by 9.7 million barrels in May-June in total, and 164 thousand barrels in Azerbaijan. At the 11th Ministerial Meeting of OPEC and non-OPEC countries held on June 6,  it was decided to extend the existing quota for another month, namely to the end of July.