Middle East Petroleum Farm, a Dubai-based branch of the Azeri Azersun Holding, will see a significant drop in its oil and oil products’ exports via Azerbaijan, Reuters has reported.
Crude shipments are expected to fall to 6mn tonnes in 2015 from 7.5mn tonnes in 2014 due to the fall in oil prices, the holding’s president has said.
“Companies, which produce oil in Kazakhstan and Turkmenistan, don’t want to boost oil sales as it’s not commercially viable due to the decline in oil prices,” Abdulbari Gozal told Reuters.
In 2014, Middle East Petroleum shipped 5mn tonnes of oil and 2.5mn tonnes of oil products from Kazakhstan and Turkmenistan via Azerbaijan, Georgia and Turkey by pipeline and rail.
Last year, Azerbaijan’s total crude oil shipments have dropped 3.5% to 33.03mn tonnes from 34.25mn in 2013.
However, its oil products exports last year rose to 1.558mn tonnes, up from 1.046mn in 2013 after it started exports of fuel oil and VGO (vacuum gas oil).
