How much does Azerbaijan’s profitable oil cost? (UPDATED)

2016 April 27 (Wednesday) 10:50:20

Since beginning of the Azeri-Chirag-Guneshli (ACG) offshore bloc development in November 1997 till April 1, 2016 BP and its partners have extracted 393 million tons of oil on the contract area, said Khoshbakht Yusifzada, SOCAR’s Senior Vice President.

He added that from this volume 218 million tons was Azerbaijan’s profitable oil. “During this period 118 bcm of associated gas has been also extracted on the ACG bloc,” Yusifzada added.

He said 90,000 tons of oil and 36 mcm of associated gas a day is extracted on the ACG contract area.

“During quarter, 1, 2016 8 million tons of oil (during quarter 1, 2015 8 million tons or 59 million barrels of oil, Turan), of which 66% or 5.3 million tons is Azerbaijan’s profitable oil,” said SOCAR’s Vice President.

State Oil Fund of Azerbaijan (SOFAZ) has recently released the report about results of the ACG project in quarter 1, 2016. According to the report, from January to March 2016 SOFAZ received $1,137,000,000 received from the ACG. The estimates show that Azerbaijan’s profitable oil cost $29,08 per barrel (after deduction of operation, capital and transportation costs).—0—