SOFAR considers real oil price determined in 2010 public budget

Oil&Gas Materials 15 October 2009 19:59 (UTC +04:00)

Azerbaijan, Baku, October 15 / Trend , E.Ismailov /

The price of oil at $45 per barrel, which is scheduled to be determined for 2010 Public budget of Azerbaijan, is real under in today's conditions, said the head of the State Oil Fund of Azerbaijan (SOFAR), Shahmar Movsumov. In 2009, the price of oil in Azerbaijan's Public budget was laid at $70 per barrel.

"Determining price at $45 [per barrel] is a correct step, it needs to be conservative. As you know, today the price of oil is formed at around $70, and therefore, we believe that $45 - is a correct figure," Movsumov told journalists on Oct. 15.

In 2010, Azerbaijan is projected to produce 53.3 million tons of oil, 44.8 million tons of which will account for Azeri Light, produced on Azeri-Chirag-Guneshli field. SOCAR (State Oil Company of Azerbaijan) plans to produce 8.5 million tons of oil on independently developed onshore and offshore fields.

In 2009, oil production in the country is projected to total 45 million tons, of which about 36.5 million tons will account for light oil, and 8.5 million tons of oil will be produced by SOCAR. In 2008, the country produced 44.2 million tons of oil.

In 2010, the gas production in Azerbaijan is projected to increase to 27.2 billion cubic meters from 27 billion in 2009. This year eight billion cubic meters of gas production will account for SOCAR, nine billion is expected to be produced in the first phase of the development of offshore gas-condensate field Shah Deniz, and the rest (associated) gas will be produced on the block of offshore Azeri-Chirag-Guneshli fields. Of the 10 billion cubic meters of associated gas which will be produced on Azeri-Chirag-Guneshli in 2009, eight billion will be re-uploaded to the reservoir to maintain pressure, and the remaining two billion will be transferred to Azerbaijan.

In general, in 2010 the rate of growth of the oil sector is projected to be 8.3 percent.

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