Azerbaijan, Baku, Oct. 12 / Trend I.Khalilova /
The 2011-state budget revenues from the oil sector is projected at 8.160 billion manat, which makes up 67.66 percent of total revenues, Finance Minister Samir Sharifov said at the joint meeting of the parliamentary committees to discuss the draft 2011-state budget .
"Given the economic situation in the world, we have approached to forecasting of the budget revenues and expenditures, with caution and set the price of oil at $60 per barrel," Sharifov said.
"Some 38 percent (1.680 billion manat) of tax revenue will be provided by the oil sector, which is less by 14.7 percent (290 million manat) compared to 2010," he said.
Meanwhile, transfers from the Sate Oil Company of the Azerbaijan Republic (SOCAR) to the 2011-state budget are projected at $ 680 million manat and the Azerbaijan International Operating Consortium (AIOC) - 600 million manat.
Transfers from the State Oil Fund expected to reach 6.48 billion manat compared to 5.915 billion manat in 2010.
The government reported that reduction of forecast for income tax for the AIOC - the operator to develop the Azeri-Chirag-Guneshli fields, from 650 million manat in 2010 to 600 million manat in 2011 is linked with the implementation of the Chirag oil project worth $6 billion up to 2013.
"This will lead to increased costs of oil companies participating in the project, therefore, their profits will decrease," the government said.
Chirag oil project involves $6 billion investments. Planned daily Azeri Light oil production from the new platform, which will be built to increase oil production at ACG, will amount to 183,000 barrels. The expected daily production of associated gas from the new platform will exceed 6.5 million cubic meters. Estimated daily volume of injected gas into the reservoir on the platform will be about 2.3 million cubic meters.
Advance drilling under the project will cover the second half of 2010 - the first half of 2012. Drilling will be carried out with the Dede Gorgud rig. Starting production from the platform is scheduled for the end of 2013. In total, 300 million barrels of oil are expected to be produced under the project (until the end of the contract on ACG in 2024).
ACG participating interests are: BP (operator - 37.43%), Chevron (11.27%), SOCAR (10%), INPEX (10.96%), Statoil (8.56%), ExxonMobil (8%), TPAO (6.75%), ITOCHU (4.30%), Hess (2.72%).
In 2011, the volume of oil production is projected at 51.5 million tons per year. Of this amount, 43 million tons will fall to Azeri Light from the Azeri-Chirag-Gunashli and 8.5 million tons will be extracted by SOCAR in the onshore and offshore fields at its own expense.
In 2010, oil production is projected at 52 million tons, of which 8.5 million tons will be produced by SOCAR.
Gas production in 2011 is projected to increase to 29, 135.9 million cubic meters, 18,179.2 million cubic meters of which will be sold. In 2010, the gas production is projected at 27,078.9 million cubic meters, of which 17,637.7 million cubic meters are intended for sale.
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