Minister: Azerbaijan to strengthen ties with OPEC fund for international development

Azerbaijan will continue to broaden its partnership with the OPEC Fund for International Development, Energy Minister Parviz Shahbazov said following talks with the Fund's President, Abdulhamid Al-Khalifa.

During the discussions, both parties exchanged views on initiatives tied to the COP29 presidency that support the energy transition, Caliber.Az reports, Shahbazov shared details of the meeting on X page.

“We had a productive meeting with Abdulhamid Al-Khalifa, President of the OPEC Fund. We exchanged views on the COP29 Presidency’s initiatives supporting the energy transition. We discussed cooperation opportunities in the development of offshore wind energy, green energy corridors, and the 1 GW wind-solar energy projects implemented with Masdar, and agreed to further expand our partnership,” Shahbazov stated.

Notably, the Organisation of the Petroleum Exporting Countries (OPEC) was established to "coordinate and unify the petroleum policies of its Member Countries, ensuring the stabilisation of oil markets to provide a reliable, efficient, and regular supply of petroleum to consumers, while securing a steady income for producers and a fair return on investments within the industry."

Currently, OPEC members account for approximately 28.89% of global crude oil production. However, their control extends much further, as they hold around 79.49% of the world's total proven crude oil reserves.

To maintain market stability, OPEC monitors oil supply and demand and makes collective decisions regarding production adjustments. This includes raising or lowering oil output to manage price fluctuations and ensure consistent supply. Any changes in production levels require a unanimous vote among member countries.

While each OPEC nation oversees its own oil production, the organisation strives to coordinate policies among its members to optimise overall output. Oil and energy ministers from OPEC countries typically convene twice a year to review and determine the group's output levels. Additional meetings are held when urgent decisions are needed to address changing market conditions.

By Aghakazim Guliyev