Chapter 633 Delayed Production

In 1994, Azerbaijan's thirst for funds has reached its extreme. It is also Aliyev's helpless move to sell 11 oil lumps in one go and a large contract of more than 30 years.

What

didn't expect was that the Aqijiu oil block, which was not very favored, turned into a super oil field with reserves of billions or even tens of billions of barrels of crude oil.

At this time, Aliyev's idea is not a reduced share, but an increased income.

Oil fields that produce 150,000 barrels of crude oil per day, whether 40% or 50% share, the resulting income increase is always much more than the oil fields that produce 15,000 barrels a day. For the devastated Azerbaijani society, a foreign exchange is not only a solution to the problem of 100 wastes, but also a catalyst to stabilize the society. .

Whether it is Aliyev's ally or his enemy, his eyes are fixed on the government's income. If the profits of the oil field are insufficient, there may be many troubles.

However, the increase in crude oil production in Azerbaijan is not a good thing for OPEC.

Not to mention the competitive relationship between the Middle East and the Caspian Sea region, the current sluggish demand for crude oil is a headache for OPEC member countries. Hundreds of thousands of barrels of crude oil are added to the market every day, which makes the crude oil production reduction strategy they have been discussing turn into water flowers in the mirror.

In the past, when crude oil fell, the common practice of OPEC was to reduce production. The daily crude oil production of countries around the world is about 80 million barrels. Among them, many oil-producing countries, such as the United States and the United Kingdom, do not export crude oil. Therefore, the only net crude oil can really determine the amount of crude oil in Mouth country.

Generally speaking, the production reduction of 1 million barrels is already a big move of OPEC. International crude oil prices are not only rising in response, but also almost in the wind.

Reducing production by 1.5 million barrels or 2 million barrels is a state of economic crisis. For OPEC, which produces 29 million barrels per day, it is a great sacrifice for 12 countries to cut total production by 7%. On average, it goes to one country, that is, more than 100,000 barrels.

As for countries other than OPEC, Russia has made a decision to reduce 300,000 barrels, which is almost the limit.

However. Azerbaijan's sudden increase in production has increased production capacity by more than 200,000 barrels, close to 300,000 barrels, which means that the production reduction of the two OPEC member countries has contributed to Azerbaijan.

Such a big market shock. It is impossible to expect OPEC to eliminate it at the expense of its own interests.

What they form is not a charity, but a monopolistic organization between countries, with the aim of making more profits. Whether it should be or not.

The Saudis are the backbone of OPEC and a special existence, because the production of crude oil is high enough. Saudi Arabia has naturally become a buffer for various oil-producing countries. Whenever crude oil needs to be reduced, the rich Saudis often take the initiative to bear more reductions, and whenever the world's crude oil is scarce, the Saudis are always the last original provider.

Until shale oil, Saudi Arabia was almost the last barrier to the world's commercial oil.

So, when Aliyev appeared, the first to receive him was the Saudis.

After a routine greeting. Jassim, on behalf of the Saudi Arabian Ministry of Petroleum, personally sent Aliyev to the hotel, followed by groups of greetings.

Aliyev enjoyed this process very much, but he remained quite cautious.

Those who come to visit now are all to test his words. This is also because his strength is not strong enough. If he is the president of a big country, even if the other party wants to do such a thing, he should ask his subordinates to do it.

However, Aliyev is an old KGB from the Soviet era. He never looks at the weight of his face. If the other party is not in a hurry, he will accompany him at ease.

It was not until Naimi of the Saudi Oil Department appeared that the two entered the state of preparatory negotiations.

The 59-year-old Naimiqi was also an awesome man. He was the longest person to sit in the position of Saudi oil minister. He was still active in the oil political circle until he was in his 70s. As his strength increased, Naimi once ranked in the top 30 of Forbes' global power list, higher than the President of the United Arab Emirates

Naimi in 1994 is not very well-known, but his strong concept, or his unique concept, is still well known by people in the oil circle.

Stable oil prices, opposing the decline of crude oil prices, and also opposing the rise of crude oil prices are completely different from other oil-producing countries.

Perhaps this is also the reason why Naimi has been doing it longer than other bigwigs.

After a few short words, Naimi asked his most concerned question through translation: "Is Azerbaijan willing to keep the price of crude oil stable?"

"Of course." Aliyev leaned against the sofa with a smile and said in a very comfortable posture, "Azerbaijan has just begun to sell crude oil to the international market. If oil prices can remain stable so that Azerbaijan's fiscal revenue remains stable, it is naturally what we need."

Oil revenue to ensure finance, which is the demand of every oil-producing country. If it is below this standard, it is very difficult to promote production reduction. Iran and Iraq after the Iran-Iraq War, especially Saddam in the Mad Dog Model, are precedents. In the difficult period after the war, let alone let them reduce production, the two countries stole Stealing production is the main problem.

This question was said by the former interviewers. Naimi nodded and said directly, "What is Azerbaijan's budget this year?"

"About 1.5 billion US dollars." Aliyev gave a lot of water.

For Azerbaijan today, 500 million US dollars is enough to make a living. As for a good life, naturally, no money is enough.

According to the current oil price, even if Azerbaijan can draw half of each barrel of crude oil, that is, between $8 and $9, Azerbaijan produces 300,000 barrels of crude oil per day, and without the maintenance period, the annual crude oil production is 90 million barrels, which is less than $800 million in the hands of the government of Afghanistan.

In a few more years, when the output of the Caspian oil region rises sharply, increasing to 2 million or even 3 million barrels per day, and the oil price doubles and again, Azerbaijan will become a truly rich country.

Naimi pondered for a moment and said, "1.5 billion is a reasonable number, but can His Excellency the President delay the harvest of crude oil and stabilize the current unstable crude oil price?"

"It can be considered." Aliyev smiled..

Naimi was slightly excited and said, "At the OPEC Ministerial Conference in January this year, the original plan was to reduce production, but the result failed to reach a conclusion. Therefore, this summit is the last opportunity this year to get the support of His Excellency the President. I am confident to persuade OPEC member countries to finally reduce production. Decide."

"The rise in oil prices is also good for Azerbaijan now." Aliyev changed his words and said, "However, the Caspian oil field has just begun to enter production, the costs of the companies have not been recovered, and the operation of the equipment is not very smooth. It is estimated that it will take some time to persuade them to extend production..."

"It also takes time to coordinate OPEC countries. How about one month?"

"It's hard to say. In addition... the extension of production will lead to short-term income shortage, and the government should also coordinate.

Naimi listened to him with his head and wanted to roll his eyes. He said to himself: You have just received so much contract money, will you still have enough income?

The other party was the president, so Naimi had to calm down and ask, "Where's the coordination time?"

"It's not easy to be sure... by the way, have you contacted Kazakhstan?"

Naimi immediately knew what Aliyev wanted to say and said with a headache: "Kazakhstan has also made some requirements, mainly in terms of oil pipelines and oil refineries... However, Kazakhstan's crude oil export channels are different from ours..."

"Kazakhstan did not agree to the demand for production reduction?"

"Yes."

Aliyev said with a blank expression, "I will make a decision after discussing with my staff."

"Thank you, Mr. President, for your reception." Naimi can only expect Aliyev to make a decision in his favor. Although OPEC can exert pressure, is it just to reduce the production of hundreds of thousands of barrels of crude oil? But it's not necessarily worth it.

Aliyev saw Naimi leave and slowly said, "Communive the news."

"Okay." His media manager nodded slightly, took the elevator in the hotel suite directly, and left the building.

At this moment, the financial reporters around the hotel looking forward to the first-hand news of OPEC are anxious.

......RB