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Transfer of AIOC assets to Azerbaijan to Begin in 2009: SOCAR President

Oil&Gas Materials 26 September 2008 12:52 (UTC +04:00)

Azerbaijan, Baku, 26 September / corr. Trend S.Aliyev, I.Khalilova / The transfer of the Azerbaijan International Operating Company's (AIOC,  operator of Azeri - Chirag - Cuneshli fields development) assets to the government's possession will began in 2009, Rovnag Abdullayev, the president of SOCAR (State Oil Company of Azerbaijan), said. 

Transfer to the zero balance will take place in connection with the time of full reimbursement of the foreign investors` investments under development of the Azeri-Chirag-Guneshli oil fields block in Azerbaijani section of the Caspian Sea.  

A working group comprised of representatives of the State Oil Fund of Azerbaijan, SOCAR and AIOC companies is established to hold preparations to this process. The group will finish its work by the end of 2008, Abdullayev said. Presently, these bodies are discussing the form of transfer of the assets to the state balance and the scheme of further activities.   

The oil prices at world markets had an influence on hastening of the process of investments compensation. The profit tax assignments of AIOC and other partners within it will reduce by the end of year due to coming zero balance date. AZN 1.784mln have already entered the state budget in September in this respect. At the same time according to the results of the first quarter of 2008 (taking into account the advance payments for the 4th quarter of last year) AZN 1.296.9mln was remitted to the treasury. Though the Finances Ministry forecasted this figure at AZN 1.75-1.8bln by the end of the year, the forecast has been fulfilled by late August. The tax bodies do not expect significant incomes in this relation by the end of year.   

The world state of market of oil prices influences on increase of assignments to the state budget from oil companies, and distribution of oil income between the state and foreign companies, which carried in the correlation of 80%/20%. 

The correspondent can be contacted at [email protected]

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