Page 15 - FSUOGM Week 37 2021

FSUOGM NEWS IN BRIEF FSUOGM

permission to supply fuel and other goods The main activity of the company is the Oil Fund of the Republic of Azerbaijan
to Nagorno-Karabakh territories still under production of atmospheric and process (SOFAZ), namely 85.7% or AZN 11.86bn).
the control of ethnic Armenians. gases and related equipment for various The remainder will be generated by the State
Azerbaijani MP Jeyhun Mammadov hit industries, including oil refining and Tax Service under the Ministry of Economy
out at Iran for what he claimed was the use petrochemicals, metallurgy, electronics and (14.3% or AZN1.98bn).
of road segments leading to the disputed food and beverages.om 31 December 2020 Also, the oil sector will maintain its
breakaway territory conducted without to around $5.5bn. leadership in the structure of state budget
consultation with Baku, which controls the revenues until 2024, when non-oil revenues
parts of the highways concerned, Trend will reach 51% of state budget revenues,
reported on September 12. Kazakhstan set to maintain the finance ministry said. The Oil Fund's
Unverified CCTV footage released transfers to the budget will be gradually
by Azerbaijani officials appears to show 1.508mn bpd oil quota in reduced, replaced by revenues from the
several Iranian petrol tankers crossing on to non-oil sector. This policy will be applied to
Azerbaijani territory. Earlier unconfirmed September ensure the long-term sustainability of the
videos posted on social media showed Fund's assets.
interviews with Iranian truckers who said Kazakhstan is set to maintain an OPEC+
they had instructions from Armenia to quota of 1.508mn barrels of oil per day
deliver their supplies to Stepanakert (known in September with production increasing EIA forecasts rise in
to Azerbaijanis as Khankendi). each month by an average of 16,000 barrels
“From July 11 to August 8, 35 Iranian per day following the 20th meeting of Azerbaijan's oil production
vehicles entered and exited 70 times the Organisation of Petroleum Exporting
through the Lachin corridor,” Mammadov Countries (OPEC) and its allies, including The US Energy Information Administration
said. Kazakhstan and Russia. (EIA) has forecast that Azerbaijan's average
He added: “In this regard, [previously] “As a result of the meeting, it was daily oil production for 2021-2022 will rise
on August11, Iranian Ambassador decided to continue the collective increase by 20,000 barrels to 740,000 barrels.
to Azerbaijan Abbas Mousavi was of the current production level by 400,000 It should be noted that according to
summoned to the foreign ministry and barrels per day by the OPEC+ countries a report published in August, the EIA
was handed a note in which the concerns every month until the participants of the estimated that daily oil production would be
of the Azerbaijani side were expressed. agreement remove the 5.8 million barrels 720,000 barrels in 2021.
Unfortunately, although a month has per day limitation. Thus, the quota for According to the EIA Short-Term Energy
passed since then, the Iranian side has still Kazakhstan under OPEC+ will be 1.508 Outlook report, average daily oil production
not responded to the protest of Baku and million barrels per day in September, in Azerbaijan was 740,000 (1Q21) and
continues to illegally transport goods to and each month production will increase 690,000 barrels (2Q21) respectively.
Karabakh.” by an average of 16,000 barrels per day,” Meanwhile, the country's average daily
Kazakhstan’s Energy Ministry said. oil production is projected to be 730,000
Kazakh Minister of National Economy barrels in 3Q21.
US Air Products and Aset Irgaliyev said oil production in 2022 Azerbaijan’s daily oil production for 2022
The EIA also increased its forecast for
would amount to 87.9mn tonnes, increasing
Chemicals intends to to 107.4mn tonnes by 2026. Kazakhstan from 780,000 barrels to 800,000 barrels.
plans to produce 85.3mn tonnes of oil in
For 2020, average daily oil production in
produce noble gases in 2021. to around $5.5bn. Azerbaijan was 760,000 (1Q20), 690,000
(2Q20), 660,000 (3Q20) and 690,000 (4Q20)

Uzbekistan barrels.
Since April 2020, OPEC and non-OPEC
US company Air Products and Chemicals Non-oil revenues of countries have worked to an agreement
intends to build a plant for the production Azerbaijan forecast to on the reduction of daily oil production
of noble gases on the territory of volumes. Earlier, Azerbaijan supported
Uzbekistan. The topic was on the exceed oil revenues in 2024 a decision to increase daily crude oil
agenda of talks between the chairman of output by 400,000 barrels per month in
Uzbekneftegaz, Mehriddin Abdullayev, and Azerbaijan's state budget revenues in 2022 August-December 2021, and to extend the
Samir Serhan, executive vice president of are forecast to amount to Azerbaijani manat Declaration of Cooperation until the end of
the US company. (AZN) 26.41bn ($15.54bn). It is expected 2022, with partial adjustments to the base
Air Products and Chemicals is one of the that 52.4% (AZN13.84bn) of this amount level of oil production from May next year,
world's leading manufacturers of industrial will be accrued from the oil sector and at the 19th Ministerial Meeting of OPEC
gases and has been operating on the market 47.6% (AZN12.57bn) from the non-oil and non-OPEC countries.
for more than 75 years. In the fiscal year sector.
2019, sales from continuing operations According to the Ministry of Finance,
in 50 countries amounted to $8.9bn, and by far the largest portion of oil revenues
capitalisation reached $50bn. will flow into the budget from the State

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