Azernews.Az

By Aynur Jafarova

Azerbaijan's state oil fund SOFAZ has received over $1.556 billion from 2007 to October 1, 2013 through implementing projects on the development of the giant Shah Deniz gas condensate field in the Caspian Sea, SOFAZ told Baku-based Trend news agency on December 24.

SOFAZ, an entity that accumulates and manages Azerbaijan's oil and gas revenues, reported that from January 1 to December 20, 2013, SOFAZ's incomes from the Shah Deniz project amounted to over $343 million.

The Shah Deniz field, which is one of the world's largest gas-condensate fields, was discovered in 1999. Its reserves are estimated at 1.2 trillion cubic meters of gas. Overall, the field has proved to be a secure and reliable supplier of gas to Azerbaijan, Georgia and Turkey as well as Europe. Currently, the potential daily volume of production at Shah Deniz is 27.3 million cubic meters of gas (depending on demand) and 55,000 barrels of condensate.

Furthermore, as of December 20, 2013, SOFAZ has received around $94.532.2 billion since early 2001 through implementing projects on developing the giant Azeri-Chirag-Gunashli (AGC) block of oil and gas fields in the Azerbaijani sector of the Caspian Sea.

SOFAZ said it received over $15.761 billion within the ACG project throughout 2013.

The ACG block of fields has been producing since 1997. The production started from the Chirag part of the field and continues successfully. This was followed by the Azeri Project: Central Azeri production started in February 2005, West Azeri began producing in December 2005, and East Azeri came on stream in October 2006. The Deepwater Gunashli section launched production in April 2008.

SOFAZ also said as of December 20, 2013, it has purchased some 30 tons and 174.9 kilograms (970 145.5 ounces) of gold, and some 20 tons and 13.55 kilograms (643 450.64 ounces) of the total volume of gold purchased by the fund were delivered to Azerbaijan.

SOFAZ was established in 1999 with assets of $271 million. The main purposes of the fund are the accumulation of funds and placement of assets abroad to minimize the negative impact on the economy, preventing the 'Dutch disease', to ensure savings for future generations, and to maintain the current social and economic standards in the country.

SOFAZ started to purchase gold since the first quarter of 2012.