Biggest gas project brings Azerbaijan $64M in 2016
Baku, Azerbaijan, Feb. 9
By Maksim Tsurkov – Trend:
Revenues of the State Oil Fund of Azerbaijan (SOFAZ) from the project to develop the Shah Deniz gas and condensate field totaled $2.506 billion from 2001 to January 1, 2017, SOFAZ told Trend.
SOFAZ received $64 million from Shah Deniz project in 2016.
However, SOFAZ has not received revenues from the Shah Deniz since June 2016 as Azerbaijan has been purchasing gas from the field in order to meet the excess demand in the domestic market.
The field’s reserve is estimated at 1.2 trillion cubic meters of gas.
A contract for development of the Shah Deniz offshore field was signed on June 4, 1996.
The shareholders in the contract are BP (operator - 28.8 percent), AzSD (10 percent), SGC Upstream (6.7 percent), Petronas (15.5 percent), Lukoil (10 percent), NIOC (10 percent) and TPAO (19 percent).
As of Oct. 1, 2016, SOFAZ’s assets increased by 6.7 percent and amounted to $35.82 billion as compared to $33.57 billion in early 2016.
SOFAZ was established in 1999 with assets of $271 million.
Based on SOFAZ’s regulations, its funds may be used for construction and reconstruction of strategically important infrastructure facilities, as well as solving important national problems.
The main goals of the State Oil Fund are accumulation of resources and placement of the Fund’s assets abroad in order to minimize the negative effect on the economy, prevention of "Dutch disease" to some extent, promotion of resource accumulation for future generations, and supporting current social and economic processes in Azerbaijan.
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