Azerbaijan"s indirect profit from oil contracts
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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Azerbaijan's financial standing continues to strengthen as the country's foreign currency reserves have surged to $71 billion as of January 1, 2025, according to the Ministry of Finance. This figure, which includes reserves held by the State Oil Fund of Azerbaijan (SOFAZ) and the Central Bank of Azerbaijan (CBA), far exceeds the nation's external debt, which stands at a fraction of its reserves, specifically nearly 14 times less. This robust reserve position reflects Azerbaijan's fiscal stability and the government’s strategic economic management.
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According to operational data from the Ministry of Energy of Azerbaijan, in January 2025, the country produced 2.3 million tons of oil, including condensate, and 3.9 billion cubic meters of gas.
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The State Oil Company of Azerbaijan (SOCAR) has opened a representative office in Albania and is set to launch a specific project this year, the Albanian company "Albgaz" announced.
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"Azerbaijan is currently among 54 middle-income countries," said Shahmar Movsumov, head of the Economic Affairs and Innovative Development Policy Department of the Presidential Administration, during the presentation of the World Bank’s World Development Report 2024 in Baku on February 10.
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