Azerbaijan has agreed to remain committed to the plan to increase daily oil output by 400,000 barrels per day, at the 25th Ministerial Meeting of the OPEC and non-OPEC countries, the Energy Ministry has reported.
The new "Declaration of Cooperation" envisages an increase in daily crude oil production in Azerbaijan by 7,000 barrels in March 2022 to reach 675,000 barrels, while the reduction commitment is 43,000 barrels.
It should be noted that the decision is made in order to support stability and balance in the global oil market.
Since April 2020, OPEC and non-OPEC countries have entered into an agreement on the reduction of daily oil production volume.
At the 19th Ministerial Meeting of OPEC and non-OPEC countries, Azerbaijan has supported the decision to increase daily crude oil output by 400,000 barrels per month in August-December 2021, and to extend the Declaration of Cooperation until late 2022, with partial adjustments to the base level of oil production from May this year.
That Declaration of Cooperation envisages increasing daily crude oil production volume in Azerbaijan every month from August to the end of the year and reducing the obligations related to cuts accordingly.
Moreover, from May 2022 to the end of the year, the calculation of Azerbaijan's oil production obligations will be continued on the basis of the existing base. In other words, the 718,000-barrel daily crude oil production in October 2018 in Azerbaijan will remain at the base level for determining the output level next year.