Oil fund reveals revenues from ACG, Shah Deniz fields

3 September 2015 16:08 (UTC+04:00)

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By Aynur Karimova

Azerbaijan's state oil fund SOFAZ has earned $115.092 billion from 2001 to September 1, 2015 by developing the giant Azeri-Chirag-Gunashli (ACG) block of oil and gas fields in the Azerbaijani sector of the Caspian Sea.

SOFAZ told Azertag State News Agency on September 2 that the fund gained $4.941 billion in January-August, 2015 within the framework of ACG project.

The ACG fields have been active since 1997. Its production first started at the Chirag part of the block. It was followed 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 $2.367 billion of profit from 2007 to September 1, 2015 by implementing the development project of the giant Shah Deniz gas condensate field in the Caspian Sea.

The fund earned some $247 million as part of the Shah Deniz project in January-August, 2015.

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 goals 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.

Aynur Karimova is AzerNews’ staff journalist, follow her on Twitter: @Aynur_Karimova