This year Azerbaijan’s profit from the gas production sharing agreements (PSA) has been going down, according to the data of the State Oil Fund of Azerbaijan (SOFAZ).
According to SOFAZ, from January to April 2016 profit from sale of gas extracted on the Shah Deniz field transferred the SOFAZ totaled $45 million.
Prior to that SOFAZ reported that in quarter 1,2016 income from the Shah Deniz gas field totaled $40 million (from January to March 2015 it totaled almost $80 million). Therefore, in April 2016 the government’s profit from the biggest gas project totaled only $5 million.
Why did Azerbaijan’s gas profit go down so much? Two factors have affected that. First of all, the biggest investments into the Shah Deniz Phase 2 project will occur in 2016-2017. Secondly, price of exported Azerbaijani gas dropped by about 25%.
As a whole since 2007 till May 1, 2016 $2,488,000,000 has been transferred to the SOFAZ’s account as a profit from profitable Azerbaijani gas extracted on the Shah Deniz field, SOFAZ reported.
* The contract for the Shah Deniz field development was signed on June 4, 1996 in Baku and ratified by the Milli Mejlis on October 17, 1996.
The Shah Deniz project partners include BP (operator with 28.8%), Petronas (15.5%), SOCAR (16.7%), «ЛУКОЙЛ» (10%), NICO (10%) and TPAO (19%). –0-
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