Azerbaijan says OPEC+ might consider oil cuts rollover at Dec 1 meeting

BAKU: OPEC+ may consider leaving its current oil output cuts in place from Jan 1 at its next meeting on Sunday, Azerbaijan’s Energy Minister Parviz Shahbazov told Reuters, as the group had already postponed hikes amid demand worries.

Azerbaijan is a member of the OPEC+ group, which includes the Organization of the Petroleum Exporting Countries and allies such as Russia, which will meet on Dec 1.

OPEC+, which pumps around half the world’s oil, has already delayed a plan to gradually lift production by several months this year because of falling prices, weak demand and rising production outside the group.

Three OPEC+ sources familiar with the discussions told Reuters last week that it may push back output increases again when it meets on Dec 1 due to weak global oil demand.The issue of continuing oil production cuts “could be raised during the meeting”, Shahbazov also told Reuters in Baku.

He said Azerbaijan, where oil output has declined after peaking in 2010, hopes to keep production stable until 2030.Azerbaijan’s oil output has been declining for several years after the Azeri-Chirag-Gunashli complex of offshore oilfields operated by BP passed its peak of 50 million metric tons, or 1 million barrels per day, in 2010.

Oil production for 2024 and 2025 is expected to be 29 million tonnes per year, or 580,000 bpd, Shahbazov added.Azerbaijan’s gas exports to Europe are expected to average 12.5 billion cubic metres per year in 2024 and 2025, he said.

The country expects its gas production to be 50 bcm this year, of which 25 bcm will be exported, the minister said. Next year, output is expected to rise to more than 50 bcm with exports expected to stay stable.

Earlier this year an Azeri presidential advisor told Reuters that the European Union and Ukraine had asked Azerbaijan to facilitate discussions with Russia regarding gas transit via Ukraine.Shahbazov refused to disclose the details of the consultations, but was sceptical about the prospects of the talks. “I don’t really know what will happen,” he said.

The current five-year deal between Moscow and Kyiv on Russian gas exports via Ukraine to Europe expires at the end of the year and Kyiv has said it does not wish to extend it.This month, Slovak state-owned gas buyer SPP said European companies are not nearing a deal to replace Russian gas imports via Ukraine with supply from Azerbaijan.Speaking on the sidelines of the COP-29 climate talks in Baku, the minister also said the share of green power generation in Azerbaijan is projected to rise to 33 per cent in 2027 from around 20 per cent now.