Beginning of gas production from the Shah Deniz 2 project will allow Azerbaijan to diversify its own energy resources.
The head of Fitch Ratings on natural resources Dmitry Marchenko said it at the annual Fitch Ratings conference on Azerbaijan in Baku on March 1.
He said the further development of the oil and gas sector of Azerbaijan will be ensured by the contract signed in 2017 for the development of the block of Azeri-Chirag-Gunashli fields, the start of gas production from Shah Deniz-2 and modernization of the Baku-based oil refinery named after. H.Aliyev.
He stressed that Fitch predicts the continuation of the trend of a gradual reduction in oil production in Azerbaijan.
According to him, Azerbaijan needs to intensify production, attract more new partners and develop its own drilling programs.
“The long-term forecast for gas production in Azerbaijan is more favourable than for oil. Gas production volumes in the country will double and Azerbaijan should take a closer look at the experience of other gas producing countries that diversify energy exports, increasing volumes of gas exports instead of oil. However, this should take into account the risks of reaching the peak production and price volatility,” said Marchenko.
