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Azerbaijan agrees to oil output freeze

Xinhua, March 7, 2016 Adjust font size:

Azerbaijan this year plans to freeze oil production at 2015 level, TREND news agency on Sunday quoted President of Azerbaijan's State Oil Company Rovnag Abdullayev as saying in an interview with local ANS TV channel.

Abdullayev said that all projects envisaging the increase of production volumes have already been suspended in the country.

According to SOCAR President, volumes of production will not exceed the average annual indicator of 2015.

At a meeting in Doha earlier on Feb. 16, oil ministers from Qatar, Russia, Saudi Arabia and Venezuela agreed to freeze, but not cut, oil output at the levels reported in January.

"Freezing now at the January level is adequate for the market," said Saudi Arabian Oil Minister Ali al-Naimi.

The agreement fell short of cutting production to shore up oil prices. However the agreement was conditional to other major producers joining it, and the effort to bring other producers on board may prove complicated.

Last year, Azerbaijan produced 41.6 million tons of oil against the forecast 40.7 million tons, and exported 38.1 million tons of oil to world markets.

The main oil output in Azerbaijan comes from Azeri-Chirag-Guneshli field. This offshore block produces Azeri Light oil with 0.15 percent sulfur and 35 degrees API.

Exports of hydrocarbons constitute up to three quarters of the Azerbaijan government's revenues, making the Caucasus country's economy highly dependent on global energy prices. Enditem