By present the volume of profitable oil of Azerbaijan produced on the Azeri-Chirag-Guneshli (ACG) fields, which are developed on the basis of the Production Sharing Agreement (PSA), totaled 152 million tons, Khoshbakht Yusifzada, senior Vice President of State Oil Company of Azerbaijan (SOCAR), said at the celebration of the 90th jubilee of Heydar Aliyev.
He said since beginning of production on ACG (November 7, 1997) 300 million tons of oil has been extracted on the contract area.
Yusifzada did not say how much oil produced on ACG was spent to cover the project costs. Using this data one can calculate Azerbaijan's share in the profitable oil since the government has got the first profit from ACG.
Azerbaijan has got its first profitable oil from ACG in December 1999. Since that time profitable oil was divided as following: 30% to Azerbaijan and 70% to the companies. In 2007 the ratio changed: Azerbaijan has got 45% and the companies 55%. Later on Azerbaijan increased its share to 55% and the companies have got 45%. Since mid-2008 the ratio remains unchanged: the state gets 80% profit and the companies 20%. As has been agreed with the companies, till 2016 Azerbaijan has committed itself to provide part of the profitable oil to BTC Co company, which is in charge of the Baku-Tbilisi-Ceyhan (BTC) oil pipeline operation. Therefore, a real share of the state in the ACG profitable oil constitutes 75%. Profitable oil of the government is sold SOCAR and then incomes are transferred to the State Oil Fund of Azerbaijan (SOFAZ).
SOCAR also has 11.65% share of profit in ACG as a company. The companies pay 25% tax from the profit made on ACG to the state. The companies also pay social taxes and profit tax from the employees' salaries (in average 25% of the salary amount).
According to the Caspian Barrel estimates, till now profit of the government from ACH totaled over $85 billion and considering other payments, Azerbaijan's income already exceeded $100 billion.
* The ACG shareholders are BP (operator) with 35.78%, Chevron - 11.27%, Inpex - 10.96%, SOCAR - 11.65%, Statoil - 8.56%, Exxon - 8%, ТРАО - 6.75%, Itocu - 4.3% and ONGC - 2.72%. -0-
Economics
-
The State Oil Company of Azerbaijan (SOCAR), Albania’s Ministry of Infrastructure and Energy, and Albanian gas company Albgaz signed a memorandum of understanding (MoU) on Sunday in Baku during the 29th session of the UN Climate Change Conference (COP 29).
-
The Green Energy Corridor project, aimed at delivering green energy from Azerbaijan through Georgia and the Black Sea to Romania, Hungary, and Bulgaria, has entered the investment assessment phase, according to Georgian Deputy Prime Minister and Minister of Economy and Sustainable Development, Levan Davitashvili.
-
Azerbaijan’s state oil company SOCAR and Italy’s Italgas signed a cooperation agreement on Sunday during the 29th session of the United Nations Framework Convention on Climate Change (COP29), aimed at accelerating the energy transition.
-
Turkey aims to achieve carbon neutrality by 2053, transforming key sectors of its economy in line with a vision of "net-zero emissions and green development," President Recep Tayyip Erdogan announced at COP29 in Baku on Monday.
Leave a review