OPEC reduces forecast of liquid hydrocarbon production in Azerbaijan for this year

Azerbaijan's liquids supply for 2023 is forecast to rise by 11 tb/d to an average of 0.7 mb/d, Report informs, citing OPEC.

This is a downward revision of 11 tb/d, due to lower-than-expected major oil field production in June.

Azerbaijan's liquids production in June remained broadly stable m-o-m, averaging 0.6 mb/d, which is a drop of 26 tb/d y-o-y. Crude production averaged 500 tb/d, with NGLs output at 142 tb/d, according to official sources.

The main declines in legacy reservoirs, like Azeri-Chirag-Guneshli (ACG) oil fields, are expected to be offset by ramp-ups in other fields this year.

Azerbaijan's liquids supply for 2024 is forecast to decline by around 30 tb/d to an average of 0.7 mb/d. Growth is forecast to partly come from the Shah Deniz, Absheron, and Umid-Babek gas condensate projects. Production in Azerbaijan's ACG oil fields should also get a boost next year with a seventh ACG platform. However, the overall decline rate will be higher than the planned ramp-ups.