Oil Fund of Azerbaijan for Second Month Does Not Receive Funds under Large Gas Project

Proceeds to the State Oil Fund of Azerbaijan (SOFAZ) from the sale of profitable gas from the field Shah Deniz in January-July 2016 amounted to $ 64 million.

Note that for the second month the Oil Fund in its reports on incomes has indicated “zero income” for Shah Deniz. The latest income of the gas project was $ 19 million in May.

It is clear that at present the main profit obtained in the framework of the project Shah Deniz 1 (daily produces about 30 million cubic meters of gas and 50 thousand cubic meters of condensate) is to cover the large investments in the framework of the project Shah Deniz 2. However, under the terms of the PSA contract, "zero profit" is not accepted either for the state, or for the companies. At the request sent by the agency Turan to the Petroleum Fund on the issue it was said that this topic was raised in front of SOCAR and the project operator, BP. The official explanation is coming soon.

According to SOFAZ, on the whole, from the beginning of the production of the gas from the field Shah Deniz (July 2007) to August 1, 2016 the sale of profitable gas gave the Oil Fund $ 2 billion 506 million.

The contract to develop the field Shah Deniz was signed in Baku on June 4, 1996 and ratified by the Milli Majlis on October 17 of the same year.

The shareholders of the project Shah-Deniz are BP (operator – 28.8%), TPAO (19%), Petronas (15.5%), SOCAR (10%), Lukoil (10%), NICO (10%) and SGC (6.7%). -12B--