In quarter 1, 2016 $1,137,000,000 has been transferred to the State Oil Fund of Azerbaijan (SOFAZ) from the Azeri-Chirag-Guneshli (ACG) oil project in the Azerbaijani sector of the Caspian Sea.
From January to March 2015 SOFAZ’s incomes from ACG totaled $2,195,000,000. Thus, during quarter 1, 2016 SOFAZ’s incomes from profitable oil only from the ACG project went down by $1,058,000,000 or by 48.2%.
According to the information provided by SOFAZ to Turan agency, in March 2016 SOFAZ received $347 million from profitable oil from the ACG. In January 2016 SOFAZ’s incomes from the ACG totaled $442 million, while in February 2016 – $348 million.
SOFAZ reminded that from 2001 till April 1, 216 $118,146,000,000 has been transferred to SOFAZ from the ACG.
Why did Azerbaijan’s oil revenues from the ACG start going down? According to Turan, first of all, in quarter 1, 2016 oil prices at the world market were about 35% lower, than during the same period in 2015. Secondly, the volume of production on the ACG contract area started going down and this year production is forecast to decline after two-year stable period.
* The contract for development of big offshore field ACG was concluded in 1994. The first oil was extracted in November 1997. Azerbaijan produced the first oil from the ACG in December 1999. The Oil Fund was created at the same time. But the Fund started working in June 2001. 93% of proceeds of the Oil Fund come from the ACG.
By January 1, 2016 SOFAZ’s assets totaled $33.57 billion.
