In addition to direct profit from production sharing agreements (PSA), such as government's profit from oil, profit of State Oil Company of Azerbaijan (SOCAR) in the form of oil as well as profit tax of oil companies, Azerbaijan gets indirect profits, reads the audit report "BP Stable Development in Azerbaijan in 2011."
According to the report, during 2011 BP company and its partners in Azerbaijani projects, mainly Azeri-Chirag-Guneshli, Shakh-Deniz, BTC and SCP, signed long-term contracts worth $700 million with 38 Azerbaijani companies.
Within the projects for stable development in 2011, last year costs of BP and its partners in the Azerbaijani projects reached $1.2 billion, up 17% against 2010. Of total sum of the costs $255 million fell to the contracts with small- and medium-size companies. The growth constituted 77% against 2010. $285 million fell to share of joint ventures with the growth of 8%. In addition, the contracts with the state enterprises totaled $36 million, up 33% against 2010.-0-
Economics
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On July 26, the Ministry of Economy hosted a meeting with entrepreneurs from the non-oil industry to explore ways to stimulate local production and enhance export potential.
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Azerbaijani internet service providers Aztelekom and Baktelekom will introduce substantial changes to their pricing structure starting August 15, the companies announced today. Under the new tariffs, the minimum internet speed will rise to 100 Mbit/s, with the cost per Mbit/s decreasing from 0.45 AZN to 0.25 AZN. As a result, monthly charges will be set at 25 AZN for 100 Mbit/s, 30 AZN for 150 Mbit/s, and 36 AZN for 250 Mbit/s.
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Independent experts suggest that Azerbaijan may be on the verge of another devaluation of its currency, the manat, due to a shrinking trade and payment surplus. The anticipated economic adjustments come amidst a decline in foreign currency inflows and reduced oil production.
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Azerbaijan’s Foreign Minister Jeyhun Bayramov met today with Ahmed Moallim Figi, the Minister of Foreign Affairs and International Cooperation of Somalia, at the Azerbaijani Foreign Ministry. This meeting followed a discussion held the previous day between Figi and Azerbaijan’s Economy Minister Mikail Jabbarov.
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