October 24, 2019 / 2:49 PM / a month ago

UPDATE 1-Azerbaijan to keep oil output flat, raise gas production in 2020

(Adds more detail on targets from draft budget, context)

BAKU, Oct 24 (Reuters) - Azerbaijan plans to keep its oil output flat, while increasing natural gas production in 2020, its draft budget obtained by Reuters on Thursday showed.

The country plans to produce 37.712 million tonnes of oil next year, slightly less than the 37.752 million tonnes projected for 2019, and 37.820 billion cubic metres (bcm) of gas, up from this year’s 35.183 bcm.

Azerbaijan, which produced 38.810 million tonnes of oil and 30.134 bcm of gas in 2018 and where oil and gas account for about 95% of exports and 75% of government revenue, expects to increase oil output to 38.246 million tonnes in 2021, 38.520 million tonnes in 2022 and 38.634 million tonnes in 2023.

Natural gas production is also projected to rise to 42.833 bcm in 2021, 45.579 bcm in 2022 and 47.436 bcm in 2023.

Oil output in Azerbaijan, led by BP and Azeri state energy company SOCAR’s Azeri-Chirag-Guneshli oilfields (ACG), has been stable over the past couple of years.

BP and SOCAR say that ACG, which has so far produced 3.5 billion barrels of oil, has the potential to pump a further 3 billion barrels by 2050.

Azerbaijan, a major producer of gas in the region, aims to export to Europe from its giant Shah Deniz II field by 2020. (Reporting by Nailia Bagirova; writing by Margarita Antidze; Editing by Deepa Babington and Alexander Smith)

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