OPEC updates forecast for Azerbaijan’s 2023 liquid hydrocarbon production 

Azerbaijan's liquid hydrocarbon production for 2023 is forecast to rise by 22 tb/d to an average of 0.7 mb/d. This is a downward revision of a minor 7 tb/d, due to lower-than-expected major oil field production in May, Report informs, citing the OPEC Monthly Oil Market Report (the MOMR).

Azerbaijan's liquid hydrocarbon production in May remained broadly stable m-o-m, averaging 0.7 mb/d, which is a drop of 65 tb/d y-o-y. Crude production averaged 511 tb/d, with NGLs output at 145 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 liquid 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,” the MOMR said.