Azerbaijan’s State Oil Fund reveals revenues from largest gas project

Oil&Gas Materials 3 November 2015 12:44 (UTC +04:00)

Baku, Azerbaijan, Nov.3

By Maksim Tsurkov - Trend:

The revenues of the State Oil Fund of Azerbaijan (SOFAZ) from the project for developing the Shah Deniz gas and condensate field in the Azerbaijani sector of the Caspian Sea totaled $2.4 billion from 2007 to Nov.1, 2015, SOFAZ told Trend Nov.3.

SOFAZ said its revenues from the Shah Deniz project stood at $279 million in Jan.-Oct. 2015.

The contract for developing the Shah Deniz offshore field was signed on June 4, 1996. The field's reserve is estimated at 1.2 trillion cubic meters of gas.

The shareholders are: BP, operator (28.8 percent), AzSD (10 percent), SGC Upstream (6.7 percent), Petronas (15.5 percent), Lukoil (10 percent), NICO (10 percent) and TPAO (19 percent).

The State Oil Fund was created in 1999 and its assets were equal to $271 million that time.

The assets of SOFAZ dropped by 6.38 percent as of Oct.1, 2015 and totaled $34.74 billion compared to early 2015 ($37.1 billion).

Under SOFAZ's regulations, its funds may be used for the construction and reconstruction of strategically important infrastructure facilities, as well as solving important national problems.

The main goals of the State Oil Fund include: accumulation of resources and the placement of the fund's assets abroad in order to minimize the negative affect on the economy, preventing the "Dutch disease" to some extent, promoting resource accumulation for future generations and supporting current social and economic processes in Azerbaijan.

Edited by SI


Follow the author on Twitter: @MaksimTsurkov