Due to the acceleration of vaccination processes in 2021, economic activity in Azerbaijan, as well as around the world, increased reactivating various fields.
In parallel with the demand for energy resources in the oil sector, oil and gas prices have risen significantly. Taking advantage of positive global trends, SOCAR has managed to ensure the sustainability of business operations as a result of measures taken to optimize costs and increase production efficiency. This is reflected in the company’s key production indicators.
In 2021, SOCAR conducted about 62,000 meters1 of drilling work, increasing it by 10.3% compared to 2020. 7.9 million tons of oil and 7.9 billion cubic meters of gas were produced in the fields operated by the company on its own or as a major shareholder. Oil and gas production is 6.5% and 7% higher than the same period last year, respectively. The upward trend in total oil and gas production in the country continued. This is especially evident in gas production. Compared to 2020, gas production increased by 18.1% to 43.9 billion cubic meters. During the year, Azerbaijan produced 34.6 million tons of crude oil. The slight increase in oil production is mainly due to the gradual removal of voluntary oil output cuts imposed by the OPEC + agreement.
In 2021, SOCAR’s oil exports to world markets increased by about 1% to 18.1 million tons. This includes the volumes of oil produced by the company on its own, as well as the profit shares of the government of Azerbaijan and SOCAR in oil produced by international consortiums operated in Azerbaijan. Natural gas exports increased by 40% to 18.8 billion cubic meters8.
Last year, a total of 13 billion cubic meters of natural gas was consumed in the country. This is 8.4% more than the previous year.
During the year, SOCAR’s Heydar Aliyev Oil Refinery processed 6.7 million tons of oil while SOCAR’s Natural Gas Processing Plant’s output was 3.8 billion cubic meters. The volume of oil refining grew by more than 13.3% amidst relative decrease in gas processing.
In the context of the results of 2021, it should also be noted that oil refining and petrochemical products (including polymers) export exceeded 3 million tons. This is about 25.5% more than the results of 2020.