High Oil Prices in World Market Good for Azerbaijan – Expert

Azerbaijan, Baku / Trend corr A. Badalova / Recent high oil prices in world market are good for Azerbaijan, the Director of Public Finances Monitoring Centre (PFMC), Inglab Ahmadov, said at a press conference on 20 September.

According to him, whilst the world price for oil is $60 per barrel, Azerbaijani Government will benefit more from implementation of the Contract of the Century (development of Azeri-Chirag-Gunashli fields) than its foreign partners on the contracted area. The distribution coefficient of oil income from Azeri-Chirag-Gunashli can achieve its maximum level (80%) for the Azerbaijani Government. According to the forecasts, income distribution ratio can make up 80% (Azerbaijani Government), 20% (foreign partners) in the first quarter of 2008.

According to Ahmadov, although oil production in Azeri-Chirag-Gunashli will be dropping after 2012, the total volume of oil production in Azerbaijan will remain high by 2023 owing to other fields and new technology.

In his opinion, an increase of world oil prices to $100 per barrel is possible. "That can be caused by the situation in Iran and Iraq, the situation in European and US markets, the situation in China and India, as well as Russia's policy," he said.

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