SOFAR Expects no Serious Problems in Revenues Due to Fall on Oil Prices
Drop in the world oil prices will not influence the budget forecasts of the State Oil Fund of Azerbaijan (SOFAR), Trend reports.
I do not see any serious problem, because the SOFAR budget was formed at the price of $50 per one barrel of oil and the currently the world prices exceed this point, Shahmar Movsumov, the SOFAR Executive Director said on 20 January 2007.
He did not exclude opportunities for the consideration in the covering of the deficit at the expense of the Stabilization Fund reserves in case of fall in world oil prices from the point set in the public budget.
In accordance with the adopted budget, SOFAR income comprises of 1,555,739,6 manats and expenses at 977,066,9 manats.
AZERI LT CIF Augusta price was $51.59 (down $0.43 per barrel as compared to 17 January).
Azeri Light oil is produced from Azeri-Chirag-Gunashli offshore fields, which is developed under BP operations. It is directly delivered to the Turkish port of Ceyhan via the Baku-Tbilisi-Ceyhan main export oil pipeline, to the Georgian port of Supsa via the Baku-Supsa pipeline and to the Georgian port of Batumi by railway. The density of Azeri Light is 34.8 degrees by API and its sulphur content is 0.15%.