OPEC+ agreement reduces oil output in Azerbaijan and region

The OPEC+ agreement has led to a decline in oil production in both Azerbaijan and the wider region, Tamara Safonova, CEO of NAANS-Media, stated during the "Caspian and Central Asia – Refining, Petrochemicals, Trade, Logistics" event held in Baku, Report informs.

"Although Kazakhstan reached 90 million tons of oil production in 2023, a decrease was recorded in 2024 in line with quota obligations. Compared to 2023, production dropped by approximately 3%. A review of OPEC and OPEC+ indicators from January 1, 2024, to August 2025 reveals notable trends. For example, Azerbaijan's oil production declined by 35% during this period. At the beginning of 2024, the country's daily output stood at 686,000 barrels, but it has since fallen to around 450,000 barrels," she noted.

Safonova explained that statistical discrepancies stem from the exclusion of gas condensate from OPEC+ agreements: "Gas condensate accounts for roughly 20% of Azerbaijans total oil and gas output. Therefore, OPEC reports only reflect crude oil volumes. Based on 2024 year-end data, Russia, Turkmenistan, Kazakhstan, and Azerbaijan remain net exporters of gas, while Uzbekistan does not produce enough to meet its domestic demand."

According to her, a similar picture is seen in oil production: "Russia holds a large share in terms of domestic consumption. Kazakhstan processes part of its roughly 18 million tons of oil and exports the rest. Azerbaijan produced approximately 29 million tons of oil in 2024-6 million tons were refined domestically at the Baku Oil Refinery, and the remainder was exported."