From January to May 2016 proceeds from sale of profitable oil from the Azeri-Chirag-Guneshli (ACG) bloc to the State Oil Fund of Azerbaijan (SOFAZ) totaled $1,801,000,000.
“Since 2001 till June 1, 2016 proceeds from sale of profitable oil of Azerbaijan from the ACG bloc to SOFAZ totaled $118,869,000,000,” said a source from SOFAZ.
Table of monthly profit of SOFAZ from ACG in 2016.
|
Months |
Profit of the state from ACG (in million USD) |
Average price of BTC FOB Ceyhan (in $/barrels) |
|
January |
442 |
32.33 |
|
February |
348 |
33.43 |
|
March |
347 |
39.80 |
|
April |
356 |
43.02 |
|
May |
308 |
48.11 |
|
Total |
1801 |
39.34 |
As one can see from the table, since early year prices for exported Azerbaijani oil have been growing almost every month, but despite that SOFAZ’s profit from ACG was going down (except for April). In May profit of the state totaled only $308 million, dropped by 30.3% against January or by $134 million. But difference in average price of export oil was about $16.00 per barrel. This means that in quarter 2, 2016 volume of oil production on the ACG contract area has been going down.
In quarter 1, 2016 average daily production volume was 651,000 barrels. According to some sources, in quarter 4, 2016 this index will drop to 620,000 barrels a day.
In 2016 profit of SOFAZ from sale of profitable oil from the ACG totaled $6.9 billion. Last year average export price of Azerbaijani oil was $53.00 per barrel.
The peak of SOFAZ’s profit from ACG was in 2011 – almost $1.6 billion a month. In 2015 it totaled over $580 million.
* The contract for development of Azeri, Chirag and a deep-water section of Guneshli fields was signed on September 20, 1994 and entered into force on December 12, 1994. The partners of the ACG project include BP (35.78%), Chevron (11.27%), ExxonMobil (8.0006%), ONGC Videsh Limited (2.72%), Inpex (10.96%), Itochu (4.3%), SOCAR (11.65%) Statoil (8.56%) and TPAO (6.75%).—0—
Economics
-
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.
-
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.
-
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.
-
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.
Leave a review