SOCAR Prevents Considerable Rise in Self Cost of Gas Production
Azerbaijan, Baku, 15 July/ Trend / In 2007, the prime cost of trade gas in 2007 was
147.8 ths manat versus 99mln manat in 2006, SOCAR said. Production costs per 1000
м3 of gas made 27.75 manat.
In 2007 the company's total gas production costs break down as follows: salary 12.3%; deductions on social insurance - 2.9%; depreciation charges - 28.6%; materials costs - 16.0%; royalty - 19.3%; land tax -0.9%.
Even if a rise of 21.0% generated on gas production cost (without mining tax), commodity production increased as 37.3%. %. In spite of considerable increases in fuel-energy costs and wage-and-salary disbursements, a sharp rise of 1000 м3 gas self-cost was prevented.
As compared with the last year, there emerged a mark-up in energy expenditures like 2760 ths Manat (96.8%), in fuel costs 3896 ths Manat (58.7%) and wage and-salary disbursements (together with social insurance contributions) 8620 ths Manat (49.8%).
|Gas production costs (ths manat)|
|Expense items||2007||Percent age||2006||Percen t age|
|Deductions on social insurance||4952||2,9||3292||2,9|
|- Land tax||1663||0,9||1049||0,9|
|- Other costs||34077||20||30212||26,5|
|Prime cost of total production||170501||100||114049||100|
|Production turnover costs||22686||15090|
|Full prime cost of trade product||147815||98959|
|Prime cost of of gas, manat||27,75||25,5|