Azerbaijan, Baku, May 26 / Trend , I. Khalilova/
Azerbaijani Finance Ministry forecasts lag in assignments of profit tax to the state budget by the Azerbaijan International Operating Company (AIOC) in 2009.
"The AIOC assignments have not been on high level since the beginning of the year. The company is behind the schedule of payments which is mainly attributable to reduced oil production from the Azeri-Chiraq-Gunashli fields contrary to forecast," Deputy Finance Minister Azer Bayramov said. "Probably there will be lag in assignment plans. I think they will not be able to fulfill the plan in a year."
He said the daily oil production from ACG must total 1 million barrels but in fact the daily production is less than this figure. However, AMOC will increase assignments to the state budget due to increase in oil prices on world markets, he said.
In 2008 the state budget received tax from the AIOC worth 2240.4 million manat. About 1.23 million manat is expected to be assigned in 2009.
AIOC is the operator on the development zeri-Chiraq-Gunashli fields, from where Azeri Light oil is produced.
Final payments must be made till April 25. According to a government source, 91.4 million manat were assigned as a result of fourth quarter of last year and 2.149 million manat for three quarters of 2008. Thus, the annual forecast was fulfilled as early as nine months, a period of high oil prices on world markets.
The AIOC assigned 555 million manat to the state budget in the first quarter of 2008 and 486.9 million manat in the second quarter and 1107.1 million manat (including advance in the fourth quarter) in the third quarter of 2008.
The assigned tranches were calculated from the price of oil at $70 per barrel. Therefore, assignments were laid in the volume of 1.55 billion manat in the updated 2008 budget forecast from the calculation of actual payment for the previous year. However, the Finance Ministry expected real assignments at 75-1.8 billion manat due to upward trend in oil prices in 2008.
In 2007, tax assignments were expected to total 1.5 billion manat given in the light of oil prices at $ 50 a barrel, but it amounted to over 2.5 billion manat. This was connected with a double increase during the year when the average price of all grades of oil remained in $82-85 per barrel and reached $147 a barrel in 2008.
Reduced forecasts for 2008, while there was real assignments in the year before last, was connected with change in dividing profits from the sale of oil between the Azerbaijani government and foreign contractor companies from 30/70 percent to 80/20 percent.
The world outlook of oil prices has affected the increase in payments to the state budget from the oil companies. High oil prices on Azeri Light and change in dividing profits from the sale of oil between the Azerbaijani government and foreign contractor companies in 2008 have contributed to a threefold increase in revenues of Azerbaijan State Oil Fund
In 2009, Azeri Light price reached $60.9 per barrel following certain fall on oil prices [once it was less than $40 per barrel].
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