Azerbaijan remains committed to its obligations under a global deal [Vienna agreement] among OPEC and some non-OPEC nations to cut the oil production, said Rovnag Abdullayev, president of Azerbaijan’s state oil company SOCAR, in his interview with Reuters.
“We are still committed to our obligations. Our oil production has decreased slightly, but revenues from oil sales have increased, thanks to a rise in the oil price,” he said. “Azerbaijan's key goal is to avoid selling oil cheaply. So, even though oil output in Azerbaijan has been slightly reduced (due to the OPEC/non-OPEC deal), revenues have grown, which shows that we are on the right track.”
Eleven non-OPEC oil producers (including Azerbaijan) have agreed to reduce the aggregate output by 558,000 barrels per day at the meeting held in Vienna in December of 2016. The agreement was concluded for the first half of 2017 and extended at the meeting on May 25 until the end of the first quarter of 2018.
In January-July 2017, 22.5 million tons of oil and gas condensate were produced in Azerbaijan, which is less by 8.9 percent as compared to the same period of 2016. Azeri-Chirag-Gunashli (ACG) block of oil and gas fields accounts for the major volume of oil production in Azerbaijan.
The contract for the development of the ACG field was signed in 1994. The proven oil reserves of the block near 1 billion tons.
The shareholders of the project are BP (operator, 35.78 percent), Chevron (11.28 percent), Inpex (10.96 percent), AzACG (11.65 percent), Statoil (8.55 percent), Exxon (8 percent), TPAO (6.75 percent), Itocu (4.3 percent) and ONGC (2.72 percent).