This was a sharp change of stance by the ex-Soviet oil producer, which had earlier declined an invitation for a meeting with the Organization of Petroleum Exporting Countries.

Aliyev said the slump in the oil price, down by more than 70 percent over the last 18 months amid a supply glut and rising production, had caught his government off-guard.

"Of course, we were not prepared for that. We, in Azerbaijan were preparing ourselves for so-called post oil era in about 20 years from now," he said at the World Economic Forum meeting of business leaders and policy makers in Davos.

"Therefore for us it was a surprise and at the same time it was a stress for our economy because we planned our budget at the level of $50 this year and $90 last year," he added.

Oil futures hit their lowest since 2003 this week, and on Thursday benchmark Brent was around $28 per barrel.

Rakhman Gurbanov, vice-president for Azeri state energy company SOCAR's oil-gas production and transportation, has said that output may be regulated by mothballing wells.

Last year, Azeri oil output fell by 0.8 percent to 41.7 million tonnes (837,000 barrels per day).

The Azeri leader also said if low oil prices persisted, it would put a lot of pressure on the country's budget.

Aliyev said protests in Azerbaijan following a steep currency devaluation there were relatively small and were now over.

"It was a minor protest based on some, you know, stress situation, people were not prepared for that. But now it's over. And I think that economic development in Azerbaijan will be sustainable," he said.

Azerbaijan would be able to develop sustainably, the president added.

 

(Reuters)