State Oil Co. of Azerbaijan will use a $1 billion Eurobond sale to repay debt and expand output from its fields, President Rovnaq Abdullayev said.
The Baku-based producer plans to approve next month a plan to upgrade technology to boost output at its offshore fields; Oil Rocks, 28 May, Daniz, Nariman Narimanov and Absheron, the company’s president told reporters today in the capital.
“We expect an output increase of 1 million tons to 2 million tons a year,” Abdullayev said. The company pumped 8.2 million metric tons of oil last year, a drop of 1.9 percent, according to figures on its website. It also produced 6.87 billion cubic meters of natural gas in 2012, down 3 percent.
Azerbaijan’s total oil output dropped for a second year to 43 million tons in 2012. The country increased production of marketable natural gas last year by 5.4 percent to 17 billion cubic meters, according to the State Statistics Committee.
Production from the BP Plc-led Azeri-Chirag-Guneshli field will stay the same this year, Abdullayev said, after it declined by 7 percent last year. The field produced about an equal volume of crude in February as the same month a year earlier, he said.