Azerbaijan, Baku, Feb. 25 / Trend N. Ismayilova /
The Azerbaijani government does not exclude the possibility of revising the 2011 state budget projections for 2011.
"We do not exclude the possibility of revising the budget projections for 2011. As in previous years, if the macroeconomic situation in the country allows, then these issues can be addressed," Finance Minister Samir Sharifov told journalists.
Revenues of the 2011 state budget are approved at 12.061 million manat and expenses at 12.748 million manat.
The state budget is expected to receive more revenues due to rising oil prices on world markets.
He said Azerbaijan's state budget revenue from income tax from the Azerbaijan International Operating Company (AIOC) in 2011 may exceed the forecast.
"But, given that 20-25 percent of oil revenues falls to AIOC, and the rest accounted for the State Oil Fund, this growth is expected to be negligible," he said.
"It all will be calculated and, if from an economic point of view would be reasonable, then specific measures will be taken," Sharifov said.
The increase is not expected regarding the transfers from the State Oil Company of the Azerbaijan Republic (SOCAR), which mainly sells petroleum products in the local market, where prices for these products are not increased.
"We do not expect growth in income tax from SOCAR," Sharifov said.
Meanwhile, transfers from SOCAR to the 2011 state budget are projected at $680 million manat and the AIOC at 600 million manat.
Transfers from the State Oil Fund are expected to reach 6.48 billion manat compared to 5.915 billion manat in 2010.
Transfers from the AIOC were 741.1 million manat in 2010 compared to the projected 650 million manat.
The government reported earlier reduction of the forecast for income tax for the AIOC - the operator to develop the Azeri-Chirag-Guneshli fields - from 650 million manat in 2010 to 600 million manat in 2011 is linked with the implementation of the Chirag oil project worth $6 billion up to 2013.
"This will lead to increased costs of oil companies participating in the project; therefore, their profits will decrease," the government said.
The Chirag oil project involves $6 billion investments. Planned Azeri Light oil production daily from the new platform, which will be built to increase oil production at ACG, will amount to 183,000 barrels. The expected daily production of associated gas from the new platform will exceed 6.5 million cubic meters. Estimated daily volume of injected gas into the reservoir on the platform will be about 2.3 million cubic meters.
Advance drilling under the project will cover the second half of 2010 and the first half of 2012. Drilling will be carried out with the Dede Gorgud rig. Starting production from the platform is scheduled for the end of 2013. In total, 300 million barrels of oil are expected to be produced under the project (until the end of the contract on ACG in 2024).
ACG participating interests are: BP (operator - 37.43 percent), Chevron (11.27 percent), SOCAR (10 percent), INPEX (10.96 percent), Statoil (8.56 percent), ExxonMobil (8 percent), TPAO (6.75 percent), ITOCHU (4.30 percent), Hess (2.72 percent).
In 2011, the volume of oil production is projected at 51.5 million tons per year. Of this amount, 43 million tons will fall to Azeri Light from the Azeri-Chirag-Gunashli, and 8.5 million tons will be extracted by SOCAR in the onshore and offshore fields at its own expense.
In 2010, oil production is projected at 52 million tons, of which 8.5 million will be produced by SOCAR.
Gas production in 2011 is projected to increase to 29,135.9 million cubic meters, 18,179.2 million of which will be sold. In 2010, the gas production is projected at 27,078.9 million cubic meters, of which 17,637.7 million are intended for sale.
The official exchange rate is 0.7941 manat to $1 on Feb. 25.