Oil production costs SOCAR $20 per barrel (UPDATE)
Details added (first version posted at 18:02)
Baku, Azerbaijan, Jan. 25
By Maksim Tsurkov - Trend:
Oil production at Azerbaijan's offshore and onshore fields costs SOCAR (State Oil Company of Azerbaijan) $20 per barrel on average, said Elshad Nasirov, SOCAR's vice president for investments and marketing.
He made the remarks during an interview with the Swiss TV channel SRF on Jan. 25.
Nasirov said the prime cost of oil production stands below $25 a barrel in Azerbaijan.
"Oil is produced at onshore and offshore fields in Azerbaijan, so the prime cost of the production is different," he said. "The development of old, onshore fields requires many more funds than that at the new offshore fields. On average, oil production costs SOCAR $20 per barrel."
Further answering to a question about the oil prices, Nasirov expressed confidence that the prices will start growing again after a while.
"Taking a look at the history, it can be seen that the price is cyclical in nature," he said. "We believe that oil prices will rise again. SOCAR is not worried about the current fall in prices. The price depends on various factors, and this complicates the prediction of price dynamics."
"Economic issues, of course, play a certain role," he added. "However, the political factors have an influence too. The oil price can drop to $20 a barrel. But this price will not remain for a long time, as a decrease will be felt in the investments made in the sector. Today, many producers extract oil at a low cost."
Nasirov added that along with that, the demand will exceed the supply again.
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