BAKU

Azerbaijan’s revenues from oil and gas export rose in the first half of 2021 backed by an increase in gas output and sales and higher oil price on world markets.

The country exported 13.546 million tonnes of oil for $5.744 billion in January-June, the State Customs Committee said. While oil export volumes were 11.7 percent lower year-on-year, this was offset by the global rise in oil prices, which increased sales revenue by 7.6 percent.

The share of oil in the overall structure of Azerbaijan’s exports in January-June amounted to 65.19 percent, down from 69.47 percent in the same period last year.

Italy bought 48.7 percent of the total volume of Azeri Light oil sold by Azerbaijan. The other two top buyers were Spain and India, followed by Israel, China, Tunisia and several European countries.

Azerbaijan exported 10.348 billion cubic metres (bcm) of natural gas in the first six months of this year, 57.3 percent more than in January-June 2020.

The country earned $1.586 billion from gas sales, 25.8 percent up from the first half of last year,

The share of gas in total exports accounted for 18 percent, up from 16.4 percent in January-June last year.

Azerbaijan supplied 6.293 bcm of gas to Turkey for $881 million, 1.990 bcm to Georgia for $253 million.

Over 2 bcm of gas in total has been also exported to Italy, Greece and Bulgaria for a total amount of $449 million.

The opening of the Southern Gas Corridor in December 2020 allowed Azerbaijan to start gas exports to Europe, giving the ex-Soviet country the means to increase its share in the market until now dominated by Russia.

Azerbaijan mainly produces natural gas at its giant Shah Deniz field. The BP-led consortium, which develops the Shah Deniz project, has been pumping gas from the offshore field’s first phase since 2006, delivering more than 10 bcm a year of gas to Azerbaijan, Georgia and Turkey. The second phase started output in 2018, adding 16 bcm of gas production capacity at its peak to bring total capacity to 26 bcm.