SOCAR's oil, gas production cost increases
BAKU, Azerbaijan, Sept. 2
By Zeyni Jafarov – Trend:
The cost of production of one ton of oil by the State Oil Company of Azerbaijan (SOCAR) amounted to 123.8 manats ($72.8) in 2019, having increased by 4.9 percent or 5.8 manats ($3.4) compared to 2018, Trend reports with reference to SOCAR’s report.
The specific share of a material and component expenses of the company in the total cost structure for oil production is 3.9 percent, wages - 15.3 percent, social contributions - 2.9 percent, depreciation charges - 17.7 percent, repair costs - 11.6 percent, maintenance costs 5.2 percent, transportation costs - 16.9 percent, mineral extraction tax - 8.2 percent.
The actual cost of 1,000 cubic meters of SOCAR’s gas in 2019 amounted to 61.8 manats ($36.3), which is by 4.2 manats ($2.4) or 7.4 percent more compared to 2018.
The annual increase in the gas cost was due to the growth of material expenses, electricity expenses, wages, and maintenance expenses of fixed assets, security expenses, other taxes, and expenses for other services.
The prime cost is estimated only in the oil and gas production departments of the company.
(1 USD = 1.7 manat on Sept. 2)
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