SOCAR’s oil production cost increases
Baku, Azerbaijan, Sept. 26
By Maksim Tsurkov – Trend:
The cost of oil produced by Azerbaijan’s state oil company SOCAR in 2016 was 97.81 manats per ton, which is 3.07 manats (3.2 percent) more than in 2015, said SOCAR’s report on economic activity in 2016 posted on its website.
SOCAR’s total expenditures related to oil production exceeded 696.12 million manats in 2016 (697.23 million manats in 2015), according to the report.
Expenses for obtaining commercial products amounted to about 606.46 million manats in 2016 (against 639.32 million manats in 2015).
The volume of SOCAR’s commercial oil last year amounted to about 6.2 million tons, which is 8.8 percent less than in 2015.
The major part of SOCAR’s expenses in 2016 accounted for depreciation of fixed assets (17.5 percent), use of transport and vehicles (17 percent), payment of wages (15.5 percent), major repairs (7.1 percent), payments on the subsoil tax (9.9 percent).
According to the report, in 2016, SOCAR independently produced 7.52 million tons of oil, this is while the company produced 31.02 million tons of oil together with foreign companies, and in Azerbaijan, this figure amounted to 41 million tons. In 2015, these figures were 8.16 million tons, 31.16 and 41.6 million tons, respectively.
The total assets of SOCAR in 2016 amounted to 53.01 billion manats compared to about 39.95 billion manats in 2015. The total capital of SOCAR in 2016 amounted to 17.7 billion manats compared to 14.65 billion manats in 2015. At the same time, the authorized capital of SOCAR amounted to 1.8 billion manats in 2016 compared to 1.42 billion manats in 2015.
SOCAR includes such production associations as Azneft (enterprises producing oil and gas onshore and offshore), Azerikimya (chemical enterprises) and Azerigas (distributor of gas), as well as oil and gas processing plants, service companies, and the facilities involved in geophysical and drilling operations.
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