BAKU

Azerbaijan’s revenues from oil exported from Azeri-Chirag-Guneshli (ACG) oilfields rose to $3.489 million in the first eight months of this year, up from $2.657 million in the same period last year, despite a decline in oil output and backed by higher oil price on world markets.

ACG is the largest oil field block in Azerbaijan developed by a BP-led international consortium. The first production sharing agreement for developing the block was signed on September 20, 1994, while a new deal on the joint exploitation of these fields and production sharing was reached on September 14, 2017. The agreement provides for the development of the areas by the end of 2049.

BP said in August that oil output at its projects in Azerbaijan declined to 468,000 barrels per day (bpd) in the first half of 2021 from 498,000 bpd a year earlier.

While oil export volumes were lower, this was offset by the global rise in oil prices, which increased sales revenue.

Revenues from natural gas sales from a giant Shah Deniz field declined to $130.137 million in January-August this year, from $232 million in the same period last year.

Azerbaijan exported 12.061 billion cubic metres (bcm) of gas in the period from January to July, 56.4 percent up from the same period last year.

The opening of the Southern Gas Corridor in December 2020 allowed Azerbaijan to start gas exports to Europe, giving the ex-Soviet country the means to increase its share in the market until now dominated by Russia.

Azerbaijan mainly produces natural gas at its giant Shah Deniz field. The BP-led consortium, which develops the Shah Deniz project, has been pumping gas from the offshore field’s first phase since 2006, delivering more than 10 bcm a year of gas to Azerbaijan, Georgia and Turkey. The second phase started output in 2018, adding 16 bcm of gas production capacity at its peak to bring total capacity to 26 bcm.

The volume of non-oil exports in the first eight months of 2021 was over $1.58 billion, 37 percent up from the same period last year.