Oil forecasts revised in Azerbaijan
Azerbaijan, Baku, July 20 / Trend I.Khalilova /
Based on amendments to public budget forecasts for 2010, the oil sector's contribution to the budget were increased by 28.76 percent. Forecasts on revenue from the State Oil Company of the Azerbaijan Republic (SOCAR) and the Azerbaijan International Operating Consortium (AIOC) increased from 1.53 billion manat to 1.970 million manat, the Tax Ministry reported.
The AIOC is the operator of the Azeri-Chirag-Guneshli fields. Oil produced from this field is branded Azeri Light.
Income transfers from the State Oil Fund are expected as earlier at 4.915 billion manat.
"Annual forecasts on AIOC transfers to the budget in terms of income tax increased to 650 million manat from 330 million manat. Forecasts on SOCAR are 1.320 billion manat," the ministry reported.
The budget price on oil also increased from $45 to $60 per barrel.
In accordance with the payment schedule agreed upon by the finance and tax ministries for 2010, transfers from the AIOC in the third and fourth quarters are expected to reach 235 million manat quarterly. The oil contracting company transferred 380 million manat to the budget in the first half of 2010, exceeding previous projections for all of 2010 by 15 percent. The tranches were calculated at an oil price of $45 per barrel, while the average price was roughly $5.
SOCAR will transfer 312 million manat in the third quarter and 432 million manat in the fourth quarter. In the first quarter, the company transferred 276 million manat, and in the second quarter 300 million manat.
This year oil production is projected at 52.5 million tons and gas production at 23.3 million cubic meters in Azerbaijan. The bulk of oil and gas production will account for the Azeri-Chirag-Guneshli and Shah Deniz fields.
Based on the amendments, budget revenues increased by 1.49 billion manat to 11.505 billion and budget expenditures increased by 1.12 billion manat to 12.275 billion manat. Centralized revenue was approved at a level of 11.0728 billion manat, local revenue at 432.196 million manat, centralized expenses at 11.081 billion manat and local expenses at 1.194 billion manat.
The budget deficit was also reduced from 1.249 billion to 770.3 million manat.
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