SOFAZ expects to receive over $5B from biggest oil project in 2018

  29 December 2017    Read: 1221
SOFAZ expects to receive over $5B from biggest oil project in 2018

Revenues to the State Oil Fund of Azerbaijan (SOFAZ) as part of the project of developing the Azeri-Chirag-Gunashli (ACG) block of oil and gas fields in the Azerbaijani sector of the Caspian Sea are projected at nearly $5.195 billion in 2018, according to the information published in the conclusion of Azerbaijan’s Chamber of Accounts on the SOFAZ budget for 2018.

According to the budget of the SOFAZ approved Dec. 28, the Fund’s revenues for 2018 are set at 11,559,956,200 manats.

SOFAZ’s revenues from the sale of profitable oil and gas are forecast at 9,723,786,100 manats.

“The biggest part of the revenues is projected from the sale of oil produced at the ACG block - $5,194.8 million,” reads the conclusion. “Revenues from the sale of hydrocarbons from the Shah Deniz gas field will amount to $428.9 million, from the Kursengi and Garabagli fields - $2.08 million, from the Surakhany and Garachuhur fields - $3.25 million, Zikh-Hovsan field - $0.87 million.”

“This is while revenues from the sale of hydrocarbons from the Murdakhanli-Jafarli-Zardab block will amount to $2.39 million, Neftchala and Khilly fields - $0.37 million, Mishovdag and Kelameddin fields - $1.43 million, the Kurovdag field - $2.02 million, Balakhany-Sabunchu Ramana and Kurdakhany fields - $11.43 million, the Binagadi block – $4.11 million, the Bahar-Gum Deniz block – $1.74 million,” the conclusion noted.

Since early 2001 and until December 1, 2017, the SOFAZ received nearly $127.89 billion as part of the project of developing the ACG block of oil and gas fields in the Azerbaijani sector of the Caspian Sea.

In January-November 2017, SOFAZ received $5.78 billion within the ACG project.

The contract for developing the ACG field was signed in 1994. A ceremony to sign a new contract on development of the ACG block of oil and gas fields was held in Baku Sept. 14, 2017.

The new ACG participating interests are as follows: BP - 30.37 percent; AzACG (SOCAR) - 25 percent; Chevron - 9.57 percent; INPEX - 9.31 percent; Statoil - 7.27 percent; ExxonMobil - 6.79 percent; TP - 5.73 percent; ITOCHU - 3.65 percent; ONGC Videsh Limited (OVL) - 2.31 percent.

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