Since mid-2007 till September 1, 2015 the Azerbaijan State Oil Fund (SOFAZ) received $2,367,000,000 from development of the Shah Deniz gas condensate field in the Azerbaijani sector of the Caspian Sea.
According to SOFAZ, from January to August 2015 the Oil Fund received $247 million from the Shah Deniz project.
During 2014 SOFAZ’s incomes from the Shah Deniz project totaled $523 million.
* The resources of the Shah Deniz field are estimated at 1.2 trillion cub.m. of gas. The contract for the Shah Deniz development was signed on June 4, 1996. The field was discovered three years later and its development started at the end of 2006.
** SOFAZ was established on December 29, 1999, it started operating in June 2001 and by that time its assets totaled $271 million. By July 1, 2015 SOFAZ’s assets totaled $35,783,300.
SOFAZ’s peak incomes were in 2011 - $19.99 million. The Fund received the first incomes exceeding a little over $ 1billion in 2006.—0—
Economics
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Azerbaijan’s economy, which is heavily dependent on oil revenues, faces a stark warning in the 2021 report by Carbon Tracker titled “Beyond the Oil States: The Urgent Need to Reduce Dependence on Oil in the Context of the Energy Transition.” The report ranks Azerbaijan among the most vulnerable oil-dependent countries, placing it in the "5th group" — a category reserved for nations expected to experience a decline in oil and gas revenues exceeding 40% over the next decade. This group includes Angola, Bahrain, Timor-Leste, Equatorial Guinea, Oman, and South Sudan, highlighting shared economic risks for these states.
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Azerbaijan's non-oil and gas exports rose 3.5% year-on-year to $2.8 billion during the first ten months of 2024, the Center for Analysis of Economic Reforms and Communication (CAERC) reported in its November "Export Review."
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Azerbaijan Railways CJSC (ADY) will modify the schedules for commuter and domestic trains in line with the Cabinet of Ministers' decision to adjust work and rest days in November, aiming to ensure safe and comfortable travel during the COP29 event, the company announced.
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In Azerbaijan, the government has increasingly relied on tax exemptions for imported goods as a tool to stabilize domestic market prices. The exemption from the 18% VAT on wheat imports, extended this year, exemplifies this approach. New measures have also been introduced, including tax relief on imports of electric vehicle chargers, while exemptions for high-cost medications are currently under discussion. Notably, defense imports continue to be free from taxes and customs duties.
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