Oil production in Azerbaijan is expected to reach 576,000 barrels per day in 2025, and will decrease to 571,000 barrels per day in 2026, Report informs referring to Fitch Ratings.
The country’s authorities attach priority importance to stabilizing production at the key Azeri-Chirag-Gunashli (ACG) field.
It is expected that about 340,000 barrels of oil will be produced daily from this block in the foreseeable future. As for natural gas, the agency predicts that its production will reach 50.3 billion cubic meters in 2025, which will be facilitated by the launch of deep-gas production at the ACG field. The agency’s analysts expect a moderate decline in production volumes in 2026, to 49 billion cubic meters.
According to official statistics, in January-May 2025, Azerbaijan produced 20.910 billion cubic meters of natural gas, of which 16.192 billion cubic meters was commercial gas. During the same period, oil production, including gas condensate, amounted to 11.438 million tons, of which 11.411 million tons were commercial oil.
The contract for the development of the Azeri, Chirag and deepwater Gunashli fields was signed in 1994, the agreement expired in 2024. In 2017, the parties signed an updated agreement, calculated until 2050.
According to the new contract, the parties’ shareholding in the project is as follows: British BP plc (project operator) – 30.37%, State Oil Company of Azerbaijan – 31.655%, Hungarian MOL – 9.57%, US ExxonMobil – 6.79%, Indian ONGC Videsh – 2.925%, Japanese Inpex Corp. – 9.31% and Itochu Oil – 3.65%, Turkish TPAO – 5.73%.
