OPEC revises country’s 2018 oil output forecasts

Azerbaijan’s oil production is expected to decline by 0.03 million barrels per day (mb/d) year-onyear to average 0.77 million barrels per day in 2018, according to OPEC’s March Oil Market Report.

Azerbaijan’s oil production is expected to decline by 0.03 million barrels per day (mb/d) year-on-year to average 0.77 million barrels per day in 2018, according to OPEC’s March Oil Market Report.

"Preliminary liquids output in 1Q18 was shown stronger than expected in the forecast, therefore it was revised up by 37,000 b/d, leading to an upward revision by 0.01 mb/d in absolute annual supply to average 0.77 mb/d, representing a contraction of 0.03 mb/d, year-onyear," said the report.

OPEC estimates that in Azerbaijan, crude oil production in January increased by 0.01 mb/d month-onmonth, most probably from the Azeri-Chirag-Guneshli (ACG) complex, to average 0.75 mb/d, broadly unchanged from January 2017.

Preliminary data on liquids supply in February shows more or less the same level of output, said the cartel.

"Azerbaijan’s liquids supply in 2017 contracted by 0.05 mb/d to average 0.80 mb/d. Azerbaijan is estimated to produce an average of 0.73 mb/d of crude oil and 0.07 mb/d of natural gas liquids (NGLs) in 2017," said the report.

OPEC and several other non-OPEC producers, including Azerbaijan have reached an agreement to extend the production deal for a further nine months. This would shift the expiration date of the agreement from March to the end of 2018. The agreement is on the same terms as those agreed in November 2016.