Revenues from biggest oil & gas projects revealed

9 August 2019 12:11 (UTC+04:00)

By Mirsaid Ibrahimzade

From 2001 and to August 1, 2019, the State Oil Fund of Azerbaijan (SOFAZ) received $143.37 billion within the framework of the project of development of the Azeri-Chirag-Gunashli (ACG) block of oil and gas fields in the Azerbaijani sector of the Caspian Sea.

From January 1 to August 1, 2019, the Fund received $5.16 billion from the ACG project, SOFAZ said in a message.

Meanwhile, revenues from the sale of gas condensate produced at the Shah Deniz field for the first half of 2019 amounted to $209 million. In total, from 2007 to August 1 this year, SOFAZ’s revenues from the sale of gas from this field amounted to almost $2.7 billion.

The State Oil Fund of Azerbaijan, established in 1999, aims at efficient accumulation of resources and placement of assets abroad, as well as for the preservation and multiplication of funds received from the effective management of oil revenues in order to minimize the negative effect to the economy, prevent "Dutch disease" to some extent, promote resource accumulation for future generations and support current social and economic processes in Azerbaijan.

The revenues of SOFAZ are formed primarily from revenues from the sale of oil that remains at the disposal of Azerbaijan in accordance with production-sharing agreements.

Budget revenues of SOFAZ reached 17.6 billion manats ($10.36 billion) in 2018, which is a 31.1 percent increase compared to 2017.

Shah Deniz gas field is the largest natural gas field in Azerbaijan. It is situated in the South Caspian Sea, off the coast of Azerbaijan, approximately 70 kilometers (43 mi) southeast of Baku, at a depth of 600 metres (2,000 ft). The field covers approximately 860 square kilometers (330 sq mi). Stretching out over 140 square kilometers, the reservoir is similar in size and shape to Manhattan Island.

Shah Deniz is considered to be a founding link for the Southern Gas Corridor, aiming to bring additional and alternative natural gas volumes to EU member countries.

--

Mirsaid Ibrahimzade is AzerNews’ staff journalist, follow him on Twitter: @MirsaidIbrahim1

Follow us on Twitter @AzerNewsAz