About 92% of revenues of Oil Fund depends on activities of ACG
According to the results of 2017, the State Oil Fund of the Republic of Azerbaijan (SOFAZ) received $ 6.41 billion from the sale of the state’s profitable oil and gas.
According to SOFAZ, the largest revenue was received through the Azeri-Chirag-Guneshli (ACG) project – $ 6.377 billion. It amounted to 99.48% of the sale of all the oil and gas revenues of the Fund and about 92% of all the revenues of SOFAZ.
It should be noted that in 2017, according to the Ministry of Energy, production in the contract area ACG fell by 6.8% or 2 million 113.9 thousand tons, reaching 28 million 906.4 million tons. Despite such a decline in production, thanks to the growth in oil prices by about 25% last year, as well as the reduction of capital expenditures by almost $ 1 billion, Azerbaijan succeeded in obtaining $ 1.277 billion more profit from ACG in 2017 than in 2016.
In 2017, the Oil Fund received a profit from the activities of 10 operating companies that fulfilled their obligations under the PSAs with the government of Azerbaijan. For 2016, the number of such agreements was only six.
In 2017, the state received the least profit from operating companies such as Neftchala Operating Company ($ 0.8 million, operator Global Energy), Aran Operating Company ($ 0.6 million, operator Zenith Energy) and Bahar Operating Company ($ 0.4 million, operator – Bahar Energy).