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Share Price: 489.30
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Change: -7.65 (-1.54%)
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UPDATE 1-Azerbaijan sees flat oil production in 2014

Thu, 19th Sep 2013 14:18

* Output at ACG stabilises this year after drop in 2011 and2012

* Azerbaijan to launch new development stage at Chirag fieldin December

By Lada Evgrashina

BAKU, Sept 19 (Reuters) - Azerbaijan expects to produce 43million tonnes of oil in 2014, unchanged from this year's level,the vice-president of the Azeri state energy company SOCAR saidon Thursday, with output stabilising after two years ofdeclines.

"Our oil production forecast for the next year is the sameas this year - 43 million tonnes," Khoshbakht Usifzade said.

Hydrocarbon production is crucial for the former Sovietrepublic where sales of oil and gas are key sources of staterevenue.

Azerbaijan produced 42.98 million tonnes in 2012. In thefirst eight months of 2013 production stood at 29.1 milliontonnes of oil, down from 29.4 million tonnes produced in thesame period last year.

Output from Azerbaijan's crucial Azeri-Chirag-Guneshli (ACG)oilfields group has stabilised this year near average 2012levels, with first-half output of 672,000 barrels a day, up from662,000 in the first quarter.

A drop in production at the ACG fields, which account formost of Azerbaijan's output, had previously raised concerns inthe former Soviet republic.

Azerbaijan plans to start the next stage development at ACGfield Chirag in December, aiming at raising oil output.

"Launch of western Chirag will increase overall oil output,but we'll have a decline in production on some other fields,"Usifzade said, explaining why oil output next year would notexceed this year's level.

He did not specify, which fields are slated for decline inoil production.

The country ships its oil via five main routes: Russia'slargest Black Sea port of Novorossiisk, neighbouring Georgia'sSupsa, Batumi and Kulevi ports as well as Turkey's Ceyhan.

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*

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