OPEC announces forecast of liquid hydrocarbon production in Azerbaijan for 2023

“Azerbaijan's liquids supply for 2023 is forecast to remain unchanged at an average of 0.7 mb/d. This is a downward revision of 10 tb/d, due to lower-than-expected major oil field production in July,” OPEC said, Report informs.

Azerbaijan's liquids production in July remained broadly stable m-o-m, averaging 0.6 mb/d, which is a drop of 46 tb/d y-o-y. Crude production averaged 501 tb/d, with NGL output at 142 tb/d, according to official sources.

Declines in legacy reservoirs, like the Azeri-Chirag-Guneshli (ACG) oil fields, are expected to be offset by ramp-ups in other fields this year. TotalEnergies has started producing gas from the first phase of the Absheron project in Azerbaijan's sector of the Caspian Sea in July.

OPEC said that Azerbaijan's liquids supply for 2024 is forecast to decline by around 20 tb/d to average 0.7 mb/d. Growth is forecast to come partly 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 planned ramp-ups.