SOCAR comments on impact of decline in world oil prices on its revenues
It is not right to talk about the impact of the short-term decline in world oil prices on the annual rates of SOCAR (State Oil Company of Azerbaijan) revenues, the head of SOCAR Rovnag Abdullayev said commenting on the fall in oil prices and its impact on company earnings.
"The situation is normal and all these processes are always taken into account in the forecasts," Abdullayev said.
Last week, considering the expectations of an escalation of the conflict in the Middle East, the price of a barrel of Brent on the London Stock Exchange went down to $97.
The world market price of oil has fallen for the third consecutive month.
In a couple of months the price of oil on the world market may fall to $85 per barrel, according to experts.
Considering the events in Ukraine, in spring the United States increased their supply of oil to the world market. At the same time the international sanctions against Iran for the supply of energy resources have been removed. Therefore, the price of oil began to decline and this process accelerated in summer. In the last three months the price has decreased by about 10-15 percent, as shown by the International Organization of Oil Exporting Countries (OPEC).
The average price on AZERI LT, exported from Azerbaijan via the Ceyhan, Batumi and Supsa ports to Italian Augusta port, was $99.04 per barrel Sept.8-12, which is $3.27 less compared to the previous week.
The average price on Urals (Ex-Novo) exported from Azerbaijan via the Novorossiysk port was $95.51 per barrel, which is $3.55 per barrel more compared to the previous week.
The average price on Brent Dated was $97.2 per barrel, which is $3.46 per barrel less compared to the previous week.
Revenues from the sale of SOCAR oil in 2013 amounted to 25.32 billion AZN compared to about 10.13 billion AZN in 2012.
Oil revenues are indicated by deduction of related tax (30 percent) of the price margin arising between the world market price of oil and the domestic price regulated by the state, according to the consolidated statement of financial activities of SOCAR in the past year, audited by the Ernst & Young.
Last year, the total revenues of SOCAR amounted to 38.43 billion AZN, compared to 17.14 billion AZN in 2012.
Some 8.95 billion AZN (3.32 billion AZN in 2012) fell on the earnings from the sale of oil and 1.85 billion AZN (2.03 billion AZN in 2012) - on the petrochemical products of the total revenue volume, according to the report
SOCAR includes Azneft producing oil and gas on land and sea, Azerkimya chemical industry and Azerigas production associations. In addition, the State Oil Company has a number of processing enterprises, service enterprises, institutions involved in geophysical and drilling operations.
SOCAR is the only oil producer in Azerbaijan (it has two refineries on its balance), and also owns petrol stations in Azerbaijan, Georgia, Ukraine, Romania and Switzerland. SOCAR is a co-owner of the largest Turkish petrochemical complex Petkim and other assets in Turkey.
Argentina, Azerbaijan ready to cooperate in nuclear research
National Center for Nuclear Research CJSC of the Ministry of Communications and High Technologies of Azerbaijan negotiates on cooperation with the INVAP SE Argentine company in the construction of nuclear reactors, the ministry stated.
The issue of cooperation has been considered in the ministry with the participation of the Minister of Communications and High Technologies of Azerbaijan Ali Abbasov and INVAP business development manager Ruben Mazi, according to the authorities.
The company is engaged in the design and construction of research reactors, installations on production of radioisotopes, nuclear fuel production, uranium enrichment, the creation of tools for radiation protection, reactor protection systems, modernization and reconstruction of research reactors, as well as the provision of the specialized consulting services in the field of nuclear technology.
Nobel Oil and Mineks International are partners of INVAP S.E. in Azerbaijan.
Argentina also has a great interest and expresses its intention to be represented in the projects implemented in Azerbaijan in the field of satellite communication.
Argentina and Azerbaijan signed an agreement on cooperation in the use of outer space for peaceful purposes in early 2014.
The opportunities that Argentina can offer to Azerbaijan in the space sphere and Azerbaijan's interest therein will be discussed. The signed document will be the basis for future cooperation between the two countries in this field.
Earlier, Argentinian company INVAP SE offered the Azerbaijani Azercosmos company cooperation in the space area. Preliminary talks were held in early 2013.
INVAP S.E. management expressed its willingness to cooperate with Azercosmos in the space sphere, the implementation of joint projects and exchange of experience and staff training in this area.