Azerbaijan's national exports to reach $6 billion in 2022

According to the Center for Economic Reforms Analysis and Communication of Azerbaijan, Azerbaijan's exports totalled $6 billion in 2022, with the non-oil sector contributing for $461.8 million.

Non-oil exports grew by $130.6 million, or 39.4%, in the reporting period compared to the same time in 2021. Fruit and vegetable exports climbed by $21.9 million to $92.3 million, accounting for a quarter of total non-oil exports.

Meanwhile, chemical product exports climbed by 9 times, aluminium and aluminium products by 57.4%, cotton yarn and cotton fibre by 35.2%, and ferrous metals and their products by 16.5%.

Exports totalled $2.9 billion dollars in February 2022, as part of the normalisation process. Exports of non-oil goods climbed by 24% to $229.6 million. Food exports grew 19.4% to $51.7 million in the same month last year, while non-food exports increased 25.4% to $177.9 million.

Last year, Azerbaijan's exports were $22.2 billion, including $2.7 billion in non-oil exports.

Mikayil Jabbarov, Azerbaijan's Economy Minister, had claimed that an increase in non-oil exports is an indication of the Azerbaijani economy's long-term viability, even during the epidemic.

The goal is to achieve long-term economic diversification, and it is intended to build a concept that will aid in the expansion of non-oil exports in this respect. By 2025, the volume of non-oil items exported is expected to double.

SOFAZ's revenues from oil and gas fields totalled $1.5 billion

The State Oil Fund of Azerbaijan (SOFAZ) reported that revenues from the country's major oil and gas fields totalled $1.5 billion in January-February 2022.

$1.3 billion came from the Azeri-Chirag-Guneshli block of fields, which is the largest oil field in the Azerbaijani sector of the Caspian Sea.

The fund received $227.5 million in earnings from the Shah Deniz field, which is one of the world's largest gas-condensate fields, including $22.1 million in condensate.

Furthermore, since 2001, revenues from the ACG group of fields have totalled $156.6 billion, while revenues from the Shah Deniz field have totalled $4.7 billion.

In 2021, the fund received $6.8 billion in earnings from the country's biggest oil and gas resources, with Azeri-Chirag-Guneshli (ACG) contributing for $5.9 billion and Shah Deniz for $884.7 million.

SOFAZ is a sovereign wealth fund that was established in 1999 to acquire and safeguard Azerbaijan's oil and gas income for future generations.

The fund collects revenue from the sale of oil contracts and began transferring funds to Azerbaijan's national budget in 2003. SOFAZ now contributes more than 80% of the country's GDP.

On September 20, 1994, a deal for the development of the ACG oil fields was signed, and it went into effect in December. In September 2017, the contract for the construction of the ACG block was extended until 2050.

BP (operator, 30.37%), SOCAR (25%), MOL (9.57%), INPEX (9.31%), Equinor (7.27%), ExxonMobil (6.79%), TPAO (5.73%), ITOCHU (3.65%), ONGC Videsh Limited (OVL) are the shareholders in the ACG project (2.31%).

In 1996, a deal was struck for the development of the Shah Deniz gas field. BP (operator, 28.8%), TPAO (19%), AzSD (10%), SGC Upstream (6.7%), PETRONAS (15.5%), LUKOIL (10%), and NICO are all shareholders in the Shah Deniz project (10%).

Foreign currency sales for SOFAZ were $371.2 million

The State Oil Fund of Azerbaijan (SOFAZ) sold $371.2 million in funds in foreign currency auctions in January, according to the fund's press department.

In all, SOFAZ sold funds worth $1 billion in foreign currency auctions this year.

In January 2022, the Fund's income from the largest oil and gas sectors were $833 million. The fund earned $683.1 million from the Azeri-Chirag-Guneshli block of fields, which are the largest oil fields in the Azerbaijani portion of the Caspian Sea, and $884.7 million from the Shah Deniz well, which is one of the world's largest gas-condensate resources.

Last year, the fund's budget revenue was AZN 15.9 billion ($9.4 billion), while budget expenditures were AZN 11.3 billion ($6.6 billion).

Azerbaijan will increase oil production by 7,000 barrels per day in April, in accordance with an OPEC+ decision

According to a new resolution reached by the OPEC+ group of oil-producing nations that Baku has welcomed, Azerbaijan will boost oil output by 7,000 barrels per day (bpd) in April to 682,000 bpd.

As the COVID-19 epidemic disrupted oil production and demand, OPEC+, a consortium of OPEC and associated producers, including Azerbaijan, lowered output by a little more than 7 million bpd to sustain prices and reduce oversupply. Russia and Kazakhstan, two former Soviet oil-producing countries, are also OPEC+ members.

Members of the group decided in April 2021 to progressively reduce cutbacks beginning in May. The revised agreement reached in September called for a 400,000 bpd rise "until the parties agree to eliminate the limitations," although Azerbaijan's oil output would remain below the 718,000 bpd produced in October 2018, when OPEC+ members agreed to progressively lower oil production. Baku applauded the decision to increase output.

Following reports that a new strain of the coronavirus known as Omicron might cause a reduction in energy consumption, OPEC+ resolved to boost output by additional 400,000 bpd in January 2022. According to experts, OPEC+ thinks that if restrictive measures are strengthened, this might lead to a decrease in energy consumption.

Azerbaijan will now produce 675,000 barrels per day in March and 682,000 barrels per day in April.

In January, the energy-rich country produced 580,900 barrels per day (bpd), down from 597,100 bpd in December. According to the government, oil output in January fell short of the country's OPEC+ target of 661,000 barrels per day. Total oil and gas condensate output was 700,500 bpd.

According to the government, oil output in January fell short of the country's OPEC+ target of 661,000 barrels per day. Total oil and gas condensate output was 700,500 bpd.

The huge offshore Azeri-Chirag-Guneshli (ACG) oilfields, constructed by a BP-led partnership, account for the majority of Azerbaijan's oil output. The nation exports oil from the ACG via the Baku-Tbilisi-Ceyhan (BTC) pipeline, which runs via Georgia and Turkey. It also transports oil to Russia via the Baku-Novorossiisk pipeline, Georgia via the Baku-Supsa pipeline, and Georgia by rail.

The BP-led partnership said in February that oil output at its Azerbaijani operations fell to 458,000 barrels per day (bpd) in 2018 from 477,000 bpd the previous year.

Azerbaijan produced 34.585 million tonnes of oil and gas condensate in 2020, and 36.713 billion cubic metres of natural gas.