Azerbaijan determines oil price for 2012

Business Materials 17 September 2011 13:51

Azerbaijan, Baku, Sept.17 /Trend, I.Khalilova/

On the backdrop of global processes and variability in world oil prices, the forecast of prices, based on which the state budget and the consolidated budget for 2012 have been formed, was determined by the Government of Azerbaijan at the level of $80, a government source told Trend. Sept. 15, the Ministry of Finance presented a budget package for next year and the next three years to the Cabinet of Ministers.

"Depending on the situation on world markets, as a result of correcting the budget projections for 2010, oil prices were increased from $45 to $60 per barrel, while in 2011 - from $60 to $80," the same source said.

In 2012 the Ministry of Economic Development determined oil price in the macroeconomic forecasts for the next year initially at $70. But in recent months the price of light Azerbaijani oil produced in the block of Azeri-Chirag-Guneshli fields was more than $100 per barrel.

On Sept.14, the price of AZERI LT CIF Augusta was $115.98 per barrel, or $0.63 per barrel down, compared to the previous day's price, according to the State Oil Company of Azerbaijan (SOCAR), which has produced Light Oil since 1997. Azeri Light oil is produced from the Azeri-Chirag-Gunashli offshore fields, which is developed under BP's 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.

AZERI LT FOB Ceyhan oil price was $115.15 per barrel, or $0.63 per barrel less than the previous day's price.