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World Oil Prices Accelerates Azerbaijan’s Share of Income from Oil Projects

Oil&Gas Materials 18 April 2008 14:01 (UTC +04:00)

Azerbaijan, Baku, 18 April / Trend corr. I.Khalilova / Shahmar Movsumov, Executive Director of the State Oil Fund of Azerbaijan (SOFAZ), stated that the Azerbaijan's share in the development of the Azeri-Chirag-Gunashli field by the Azerbaijani International Operation Company (AIOC) has increased from 50% to 70% from 1 April 2008. Foreign companies own 25% of the share.

"The economic activities of prices in world markets is acceptable for SOFAZ, as the oil price in the New York market has exceed $114 per barrel, which will lead to the increase of the Fund's income," Movsumov stated.

The remittance to SOFAZ may increase to AZN 10bln against the set income of AZN 3.6bln, due to high prices for Azeri Light oil, as well as changes of income shares from the oil sale between Azerbaijan and foreign companies, which has lead to the increase of SOFAZ incomes.

The real norm of maximum efficiency of investments (R factor) was 30/70% and brought down to 50/50%. "There is still tension in the world markets, especially in the assets and capital market," Movsumov stated. SOFAZ placed investments in highly qualified financial deals.

According to Movsumov, most investors turn to such instruments that lead to tighten during the tension in the world markets.

The participants of the project to develop the largest sea field Azeri-Chirag-Gunashli are BP (34,1367%), ChevronTexaco (10,2814%), SOCAR (10%), INPEX (10%), Statoil (8,5633%), ExxonMobil (8,006 %), TPAO (6.75%), Devon Energy (5,6262%), Itochu (3,9205%), Delta Hess (2,7213%). The volume of investments totals $20bln.

The official rate on 17 April is 0,8285 AZN/USD.

The correspondent can be contacted at: [email protected]

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