Major gas project brings Azerbaijan $2.5B
The revenues of Azerbaijan’s oil fund SOFAZ from the project on developing the Shah Deniz gas and condensate field totaled $2.5 billion from 2007 to February1, 2016, SOFAZ told Trend on February 3.
The Fund said its revenues from the Shah Deniz project reached $4 million in January 2016.
The contract for developing the Shah Deniz offshore field was signed on June 4, 1996. The field’s reserve is estimated at 1.2 trillion cubic meters of gas. The shareholders are: BP, operator (28.8 percent), AzSD (10 percent), SGC Upstream (6.7 percent), Petronas (15.5 percent), Lukoil (10 percent), NICO (10 percent) and TPAO (19 percent).
The Fund’s revenues from the Azeri-Chirag-Guneshli (ACG) oil and gas fields’ development project totaled $117.5 billion from early 2001 to February 1, 2016.
“SOFAZ’s revenues from the ACG project totaled $442 million in January 2016,” added the Fund.
A contract for development of ACG block of fields was signed in 1994. The proven oil reserve of the block nears one billion tons. The shareholders of the project are: BP (operator in the Azeri-Chirag-Guneshli) - 35.78 percent, Chevron - 11.28 percent, Inpex - 10.96 percent, AzACG - 11.65 percent, Statoil - 8.55 percent, Exxon – eight percent, TPAO - 6.75 percent, Itochu - 4.3 percent and ONGC - 2.72 percent.
SOFAZ was created in 1999 and its assets were equal to $271 million that period. The assets of SOFAZ dropped by 6.38 percent as of Oct. 1, 2015 and totaled $34.74 billion compared to early 2015 ($37.1 billion).
Under SOFAZ's regulations, its funds may be used for the construction and reconstruction of strategically important infrastructure facilities, as well as solving important national problems.
The main goals of the State Oil Fund include: accumulation of resources and the placement of its assets abroad in order to minimize the negative affect on the economy, preventing the “Dutch disease” to some extent, promoting resource accumulation for future generations and supporting current social and economic processes in Azerbaijan.
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