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Azerbaijan makes over $123B from its biggest oil project

Oil&Gas Materials 4 March 2017 08:20 (UTC +04:00)
Revenues of the State Oil Fund of Azerbaijan (SOFAZ) from the project of development of the country’s Azeri-Chirag-Gunashli (ACG) block of oil and gas fields totaled $123.1 billion from early 2001 to March 1, 2017
Azerbaijan makes over $123B from its biggest oil project

Baku, Azerbaijan, March 4

By Maksim Tsurkov – Trend:

Revenues of the State Oil Fund of Azerbaijan (SOFAZ) from the project of development of the country’s Azeri-Chirag-Gunashli (ACG) block of oil and gas fields totaled $123.1 billion from early 2001 to March 1, 2017, SOFAZ told Trend March 3.

SOFAZ said its revenues from the project totaled $993 million in January-February 2017.

A contract for development of ACG block of oil and gas fields was signed in 1994. The proven oil reserves of the block near one billion tons.

The shareholders in the project are BP (operator of the Azeri-Chirag-Guneshli, 35.78 percent), Chevron (11.28 percent), Inpex (10.96 percent), AzACG (11.65 percent), Statoil (8.55 percent), Exxon (8 percent), TPAO (6.75 percent), Itochu (4.3 percent) and ONGC (2.72 percent).

As of Jan. 1, 2017, SOFAZ assets amounted to $33.147 billion, which is 1.27 percent less than in early 2016.

SOFAZ was established in 1999 with assets of $271 million.

Based on SOFAZ’s regulations, its funds may be used for construction and reconstruction of strategically important infrastructure facilities, as well as solving important national problems.

The main goals of the State Oil Fund are accumulation of resources and placement of the Fund’s assets abroad in order to minimize the negative effect on the economy, prevention of "Dutch disease" to some extent, promotion of resource accumulation for future generations, and supporting current social and economic processes in Azerbaijan.

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Follow the author on Twitter: @MaksimTsurkov

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