SOFAZ announces revenues from Azerbaijan's biggest oil project
Baku, Azerbaijan, Sept. 4
Azerbaijan's "Azeri-Chirag-Guneshli" (ACG) block of oil and gas fields in the Azerbaijani sector of the Caspian sea brought in some $135.142 billion to the State Oil Fund of Azerbaijan (SOFAZ) since the beginning of 2001 and until September 1, 2018, the Fund told Trend Sept. 4.
"Some $6,656 billion have been received by the Fund in January-August 2018, within the framework of the ACG project," SOFAZ stated.
The contract for the development of the ACG block of fields was signed in 1994. On September 14, 2017, a new agreement on the development of the ACG block until 2050 was signed in Baku.
The equity participation in the project is as follows: BP (operator) – 30,37 percent, AzACG (SOCAR) – 25%, Chevron – 9.57 percent, INPEX – 9.31 percent, Equinor – 7.27%, ExxonMobil – 6.79 percent, TP – 5.73 percent, ITOCHU – 3.65%, ONGC Videsh Limited (OVL) is 2.31%.
The State Oil Fund was established in 1999, and at that time its assets amounted to $271 million.
The SOFAZ’s assets increased by 6.22 percent in the first half of 2018 compared to the beginning of this year ($35.806 billion), amounting to $38.036 billion.
According to the Regulations of the State Ol Fund, the Fund's resources can be used for the construction and reconstruction of strategically important infrastructure facilities, as well as for solving important national problems.
The main objectives of SOFAZ are: accumulation of resources and placement of the Fund's assets abroad in order to minimize the negative impact on the economy, to prevent to some extent the "Dutch syndrome", to accumulate funds for future generations and to support the current socio-economic processes in the country.