Azerbaijan’s energy sector experienced notable shifts in production and exports in January 2024, with implications for both domestic markets and international trade dynamics. According to S&amp;P Global Commodity Insights, Azerbaijan’s oil production in January stood at 480,000 barrels per day (bpd), marking a shortfall of 71,000 bpd compared to its OPEC+ quota of 551,000 bpd. However, the country saw a 4.5% increase in gas exports, reaching 2.3 billion cubic meters (bcm) in January, with significant portions directed to Europe and Turkey, indicating the country’s growing role as a key gas supplier in the region.In terms of production, Azerbaijan witnessed a modest 0.7% increase in gas production, totaling 4.3 bcm in January 2024. Notably, the Shah Deniz field and the Azeri-Chirag-Gunashli (ACG) block contributed significantly to gas production, reflecting ongoing developments in these key energy assets. Meanwhile, oil production experienced a decline of 5.6% compared to January 2023, with total production reaching 2.55 million tonnes.Despite fluctuations in production, Azerbaijan’s gas exports surged significantly, recording a 7.6-fold increase to 1.932 bcm in January 2024 compared to the same period last year. This surge underscores Azerbaijan’s strategic position as a major gas exporter, with diverse export routes including pipelines such as TANAP and SCP. Additionally, Azerbaijan’s oil exports witnessed declines in key European markets, with Portugal and Germany reducing imports by 44.5% and 46.3% respectively in 2023, reflecting changing dynamics in global oil trade patterns and regional energy preferences.Looking ahead, Azerbaijan’s energy sector is poised to play a pivotal role in global energy markets, with continued investments in gas infrastructure and exploration projects expected to bolster the country’s position as a reliable energy supplier. However, challenges such as meeting production quotas and navigating evolving market demands remain critical considerations for Azerbaijan as it seeks to optimize its energy resources and maximize economic benefits both domestically and internationally.

Azerbaijan’s energy sector experienced notable shifts in production and exports in January 2024, with implications for both domestic markets and internationa

G3 SitRep - Azerbaijan Oil & Gas Developments

Azerbaijan's energy sector experienced notable shifts in production and exports in January 2024, with implications for both domestic markets and international trade dynamics. According to S&P Global Commodity Insights, Azerbaijan's oil production in January stood at 480,000 barrels per day (bpd), marking a shortfall of 71,000 bpd compared to its OPEC+ quota of 551,000 bpd. However, the country saw a 4.5% increase in gas exports, reaching 2.3 billion cubic meters (bcm) in January, with significant portions directed to Europe and Turkey, indicating the country's growing role as a key gas supplier in the region.

In terms of production, Azerbaijan witnessed a modest 0.7% increase in gas production, totaling 4.3 bcm in January 2024. Notably, the Shah Deniz field and the Azeri-Chirag-Gunashli (ACG) block contributed significantly to gas production, reflecting ongoing developments in these key energy assets. Meanwhile, oil production experienced a decline of 5.6% compared to January 2023, with total production reaching 2.55 million tonnes.

Despite fluctuations in production, Azerbaijan's gas exports surged significantly, recording a 7.6-fold increase to 1.932 bcm in January 2024 compared to the same period last year. This surge underscores Azerbaijan's strategic position as a major gas exporter, with diverse export routes including pipelines such as TANAP and SCP. Additionally, Azerbaijan's oil exports witnessed declines in key European markets, with Portugal and Germany reducing imports by 44.5% and 46.3% respectively in 2023, reflecting changing dynamics in global oil trade patterns and regional energy preferences.

Looking ahead, Azerbaijan's energy sector is poised to play a pivotal role in global energy markets, with continued investments in gas infrastructure and exploration projects expected to bolster the country's position as a reliable energy supplier. However, challenges such as meeting production quotas and navigating evolving market demands remain critical considerations for Azerbaijan as it seeks to optimize its energy resources and maximize economic benefits both domestically and internationally.

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G3 Team

Azerbaijan’s energy sector experienced notable shifts in production and exports in January 2024, with implications for both domestic markets and international trade dynamics. According to S&amp;P Global Commodity Insights, Azerbaijan’s oil production in January stood at 480,000 barrels per day (bpd), marking a shortfall of 71,000 bpd compared to its OPEC+ quota of 551,000 bpd. However, the country saw a 4.5% increase in gas exports, reaching 2.3 billion cubic meters (bcm) in January, with significant portions directed to Europe and Turkey, indicating the country’s growing role as a key gas supplier in the region.

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