Azerbaijan highly appreciates the efforts of the participants of the declaration on cooperation to accelerate the restoration of stability and balance in the world oil market and provides them with the necessary support, said the message.
Minister of Energy Parviz Shahbazov noted that the implementation of the historic agreement reached in April also requires high responsibility and decisive steps by the OPEC, and countries outside cartel.
“Positive trends observed in the oil market in May undoubtedly include the role of OPEC+ countries in reducing production. A commitment to the obligations of OPEC members, as well as the position of Saudi Arabia, the UAE and Kuwait to reduce oil production in additional volumes, are crucial for regulating the oil market,” the message said.
As part of the agreement, Azerbaijan has been significantly reducing the volume of daily oil production since May 1.
“Azerbaijan, seeking the participation of foreign and local oil producers in this process on equal terms, aims at fulfilling all the obligations of the oil sector. The level of fulfillment of the country's obligations in the first decade of May is 98 percent. Our main goal is to contribute to the development of the global oil market, taking all necessary measures to reduce daily production by 164,000 barrels in May through June,” the minister said.
Azerbaijan producing crude oil in the volume of 718,000 barrels daily in October 2018, will reduce production by 164,000 barrels from May to June under the new agreement. During this time, Azerbaijan should maintain a daily production of crude oil in the amount of 554,000 barrels.
Azerbaijan’s obligations amounted to 131,000 barrels from July through December 2020, and from January 2021 through April 2022 – 98,000 barrels. According to quotas, the daily production of crude oil in Azerbaijan should not exceed 587,000 barrels from the beginning of July 2020 to the end of the year, and from January 2021 through April 2022 – 620,000 barrels.