ACG project revenues in SOFAZ exceed $105 billion

Oil&Gas Materials 2 September 2014 11:13 (UTC +04:00)

Baku, Azerbaijan, Sept.2

By Emil Ismayilov - Trend:

The State Oil Fund of Azerbaijan (SOFAZ) received $105,802 million within the development project of Azeri-Chirag-Guneshli (ACG) block of oil and gas fields in the Azerbaijani sector of the Caspian sea as of September 1, 2014, since the beginning of 2001, the fund reported to Trend Sept.2.

The contract for the development of large ACG offshore was signed in 1994. Proved oil reserves of the block are nearly 1 billion tonnes.

Participation in the contract is distributed as follows: BP (Azeri-Chirag-Guneshli operator) - 35.78 percent, Chevron - 11.27 percent, Inpex - 10.96 percent, AzACG - 11.65 percent , Statoil - 8.56 percent, Exxon - 8 percent, TPAO - 6.75 percent, Itocu - 4.3 percent and ONGC - 2.72 percent.

"The fund received $10.770 million from January to September 1, 2014 within the framework of the Azeri-Chirag-Guneshli project," SOFAZ said.

SOFAZ assets increased by 4.86 percent compared to the beginning of 2014 ($35.88 billion), and amounted to $37.62 billion as of July 1, 2014.

State Oil Fund was established in 1999, and its assets amounted to $271 million at that time.

Under the provision of the State Oil Fund, the funds may be used for the construction and reconstruction of strategically important infrastructure projects, as well as for solving of important national problems.

The main objectives of the State Oil Fund are accumulation of funds and placement of the fund's assets abroad in order to minimize the negative impact on the economy, to prevent, to some extent, "Dutch disease", to ensure the accumulation of funds for future generations and maintain the current socio-economic processes in the country.