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Azerbaijan Plans to Increase Oil Production by 5% Next Year

Azerbaijan plans to increase crude oil production by 5 percent next year to 55 million tons, according to Energy Minister Natig Aliyev.

Azerbaijan, which will produce 52.5 million tons of crude oil this year, plans to increase output to between 60 million tons to 65 million tons of crude oil a year by 2015, Aliyev said today in an interview in the Ukrainian city of Yalta, where he was attending the Black Sea Forum. The country will also produce 28.5 billion cubic meters of natural gas this year.

"Things look much better for gas," Aliyev said. "We expect an additional 16 billion cubic meters of gas to 25 billion cubic meters after we put into operation the Shah Deniz second phase."

Azerbaijan, on the western Caspian between Russia and Iran, had proved natural gas resources of 1.3 trillion cubic meters at the end of 2009, the sixth-highest in Europe and Eurasia, according to BP Plc's Statistical Review.

"Preliminary data of our exploration work allow us to speak about a new gas field in the Azeri sector of Caspian Sea," Aliyev said. "It may contain between 300 billion cubic meters to 500 billion cubic meters of gas."

Azerbaijan cooperates with international companies, including Total SA, in exploring for gas, Aliyev said. The country is also in talks with BP Plc over the development of deep gas fields, he said.

"It is not clear now how these talks will end," the minister said. "Everything will depend on how commercially attractive BP's offer will be."

Azerbaijan sells 1 billion cubic meters of gas to Iran and 2 billion cubic meters of gas to Russia, Aliyev said, adding that supplies to Russia may be increased to 5 billion cubic meters.

"That's all the market we have for our gas. We need to have access to the European market, to Ukraine and Romania," Aliyev said. "That's why we are now working on project AGRI, which stands for Azerbaijan, Georgia, Romania and is based on the idea of supplies of liquefied natural gas to the countries of the Black Sea."

Azerbaijan is also in talks with Belarus over crude oil supplies, he said. Azeri oil may replace fuel from Venezuela, he said. Venezuela agreed in October to ship 10 million tons of crude oil a year to Belarus.

Source: Bloomberg

Azerbaijan plans to increase crude oil production by 5 percent next year to 55 million tons, according to Energy Minister Natig Aliyev.

Azerbaijan, which will produce 52.5 million tons of crude oil this year, plans to increase output to between 60 million tons to 65 million tons of crude oil a year by 2015, Aliyev said today in an interview in the Ukrainian city of Yalta, where he was attending the Black Sea Forum. The country will also produce 28.5 billion cubic meters of natural gas this year.

“Things look much better for gas,” Aliyev said. “We expect an additional 16 billion cubic meters of gas to 25 billion cubic meters after we put into operation the Shah Deniz second phase.”

Azerbaijan, on the western Caspian between Russia and Iran, had proved natural gas resources of 1.3 trillion cubic meters at the end of 2009, the sixth-highest in Europe and Eurasia, according to BP Plc’s Statistical Review.

“Preliminary data of our exploration work allow us to speak about a new gas field in the Azeri sector of Caspian Sea,” Aliyev said. “It may contain between 300 billion cubic meters to 500 billion cubic meters of gas.”

Azerbaijan cooperates with international companies, including Total SA, in exploring for gas, Aliyev said. The country is also in talks with BP Plc over the development of deep gas fields, he said.

“It is not clear now how these talks will end,” the minister said. “Everything will depend on how commercially attractive BP’s offer will be.”

Azerbaijan sells 1 billion cubic meters of gas to Iran and 2 billion cubic meters of gas to Russia, Aliyev said, adding that supplies to Russia may be increased to 5 billion cubic meters.

“That’s all the market we have for our gas. We need to have access to the European market, to Ukraine and Romania,” Aliyev said. “That’s why we are now working on project AGRI, which stands for Azerbaijan, Georgia, Romania and is based on the idea of supplies of liquefied natural gas to the countries of the Black Sea.”

Azerbaijan is also in talks with Belarus over crude oil supplies, he said. Azeri oil may replace fuel from Venezuela, he said. Venezuela agreed in October to ship 10 million tons of crude oil a year to Belarus.

Source: Bloomberg

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