SOFAZ profits from ACG, Shah Deniz fields made public

By Aynur Jafarova

Azerbaijan's state oil fund SOFAZ has earned $108.51 billion from 2001 to November 1, 2014 by implementing the project of developing the giant Azeri-Chirag-Gunashli (ACG) block of oil and gas fields in the Azerbaijani sector of the Caspian Sea.

"The fund gained $13.478 billion from January to October 1, 2014 within the framework of ACG project," SOFAZ told Trend Agency on November 18.

The ACG block of fields has been active since 1997. Its production first started at the Chirag part of the block. It was followed successfully by Azeri Project; Central Azeri in February 2005, West Azeri in December 2005, and East Azeri in October 2006.

The Deepwater Gunashli section launched production in April 2008.

SOFAZ also said it gained $2.047 billion of profit from 2007 to November 1, 2014 by implementing the development project of the giant Shah Deniz gas condensate field in the Caspian Sea.

SOFAZ earned some $450 million as part of the Shah Deniz project from January 1, 2014 to November 1, 2014.

The revenues from this project have increased by 28.2 percent compared to the beginning of 2014.

The Shah Deniz field, one of the world's largest gas-condensate fields, was discovered in 1999. Its gas reserves are estimated at 1.2 trillion cubic meters. Overall, the field has proved to be a secure and reliable supplier of gas to Azerbaijan, Georgia, Turkey, and Europe.

SOFAZ, an entity that accumulates and manages Azerbaijan's oil and gas revenues, was established in 1999 with an asset worth $271 million.

The main aims of the fund include, accumulation of revenues, investment of assets abroad to minimize negative impacts on economy, prevention of the 'Dutch disease', ensuring savings for future generations, and maintaining the current social and economic standards in the country.

The asset of SOFAZ increased by 4.86 percent as of July 1, 2014 compared to early 2014 reaching to over $37.622 billion.

Since the first quarter of 2012, the fund started purchasing gold, and the amount of the purchased gold has reached to 30 tons 175 kg (970,146 ounces) as of April 1.