Oil production profitable even at $15 per barrel in Azerbaijan

Oil&Gas Materials 19 December 2015 17:21 (UTC +04:00)

Baku, Azerbaijan, Dec. 19

By Maksim Tsurkov - Trend:

The oil production in Azerbaijan remains profitable despite the prolonged fall in prices.

Thus, according to a report on SOCAR's economic activity, the prime cost of oil produced by the company amounted to 91.63 manat per ton in 2014, which is approximately $11.7 per barrel.

The prime cost of oil barrel transportation via the Baku-Novorossiysk pipeline is not more than $3, including the tariff worth 484.59 rubles per ton (about $ 0.91 per barrel). The tariff was introduced in connection with the signing of a new agreement between SOCAR and Transneft in February 2014.

SOCAR pumped almost 1.4 million tons of oil via the Baku-Novorossiysk pipeline in 2015.
Accordingly, even at oil prices worth $15 per barrel, SOCAR's production and transportation of oil remains profitable.

The price of AZERI LT oil (CIF based) produced on the block of Azeri-Chirag-Guneshli fields in the Italian port of Augusta December 18 reached $38.2 per barrel.

The cost of a barrel of Brent Dated oil, produced in the North Sea, was $37.28 per barrel Dec. 18.

The official exchange rate is 1.0499 AZN/USD Dec. 19.