Oil extraction down at the Azeri-Chirag-Gunashli oil field in 3Q16
In 3Q16, oil production was down 2.5% y/y to 622,359 barrels per day at the Azeri-Chirag-Gunashli (ACG) oil field, operated by the BP-led consortium, as operations at one of the platforms on the field (Deepwater Gunashli) were suspended for 11 days for scheduled maintenance in September 2016.
In 9M16, however, oil extraction at ACG is up 0.6% y/y to 644,000 barrels per day.
Gas production up 25.4% y/y in 3Q16
After four quarters of contraction, gas production from Shah Deniz and ACG (associated gas) increased 25.4% y/y to 3.3 bcm in 3Q16.
In 9M16, gas production was up 0.7% y/y to 10.0bcm.
CAPEX down in BP-led projects in 3Q16
BP-led consortium spent US$1.5bn (-25.2% y/y or -11.1% q/q) in capex in Azerbaijan in 3Q16 for ACG, Shah Deniz, Baku-Tbilisi-Ceyhan pipeline, and South Caucasus Pipeline. The drop in capex was driven by lower investment in ACG and Shah Deniz fields.
CAPEX was down 18.5% y/y in 9M16 to US$ 4.7bn.
IBAR rating affirmed at BB
On November 22, 2016, Fitch Ratings affirmed International Bank of Azerbaijan (IBAR) at BB with negative outlook on the expectations of continued strong sovereign support for the bank.
