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Head of SOFAZ: SOFAZ to Receive $65mln. Bonus Returns from BP and LUKoil in 2007

Politics Materials 30 January 2007 16:34 (UTC +04:00)
Head of SOFAZ: SOFAZ to Receive $65mln. Bonus Returns from BP and LUKoil in 2007

Shahmar Movsumov, the Executive Director of SOFAZ said during the press-conference today that the Fund is expected to receive 445 mln. bonus returns from international partners due to the launch of the gas production in the project of the development of Azerbaijan offshore gas condensate field, Shahdaniz.

He expressed a hope that the gas production in the field would be soon resumed. According to him, in 2007, SOFAZ is expected to receive a bonus at $20 mln. from LUKoil of Russia on a Caspian project, Yalama (D-222). The issue on obtaining bonus returns from the other Russian company, Russneft remains open. Notably, the Company signed a contract on the project on the rehabilitation and development of the onshore field, Hovsan-Zikh with SOCAR in 2006.

SOFAZ was founded in 1999. Its objectives are to accumulate returns to the Azerbaijani Government from the implementation of international oil and gas agreements. The main expenditures of SOFAZ are as follows: improving the social situation with refugees and IDP suffering from the Armenian-Azerbaijani Nagorno-Karabakh conflict, as well as financing strategic infrastructure projects.

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