Revenues of Azerbaijani State Oil Fund from Shah Deniz project announced

Oil&Gas Materials 2 September 2014 17:16 (UTC +04:00)

Baku, Azerbaijan, Sept. 2

By Emil Ismyilov - Trend:

As of September 1, 2014, the revenues of the State Oil Fund of Azerbaijan from the implementation of the "Shah Deniz" oil and gas condensate field project in the Azerbaijani sector of the Caspian Sea amounted to about $1.967 billion since 2007, the SOFAZ told Trend Sept. 1.

The fund received $370 million within the "Shah Deniz" project from January 1 to September 1, 2014, the fund reported.

Shah Deniz's reserves are estimated at 1.2 trillion cubic meters of gas. A contract was signed on June 4, 1996 to develop the Shah Deniz offshore field.

The shareholders are: BP, operator (28.8 per cent), SOCAR (16.7 per cent), Statoil (15.5 per cent), Total (10 per cent), Lukoil (10 per cent), NICO (10 per cent) and TPAO (9 per cent).

These percentages include the recent purchases of some equity from Statoil by BP and SOCAR. Total has entered into an agreement to sell its 10% interest in Shah Deniz to TPAO.
After the transaction is over, the share of the latter in the project will be 19 percent.

SOFAZ was established in 1999 with assets worth $271 million.

As of July 1, 2014, the assets of SOFAZ increased by 4.86 percent amounted to about $37.622 billion compared to early 2014 (about $35.877 billion).

The fund's main goals include accumulating resources and placing of the assets abroad in order to minimize any negative affect on Azerbaijan's economy (by the phenomenon known as 'Dutch disease'), promoting resource accumulation for future generations, and supporting current social and economic processes in Azerbaijan.