BAKU, Azerbaijan, Nov. 6
By Anastasia Savchenko - Trend:
The cost of oil production in the fields of Azerbaijan's State Oil Company SOCAR in 2018 amounted to 117.9 manat ($69.3) per ton, which is 5.8 percent more compared to the figure in 2017, Trend reports referring to the company.
In the cost of one ton of oil, the share of material expenses amounted to 4 percent, wages - 16.1 percent, deductions for social insurance - 3.3 percent, depreciation charges - 16.8 percent, expenses for repair services - 5.4 percent, expenses for maintenance of fixed assets - 9.6 percent, subsoil tax - 8.9 percent, transportation costs - 16.5 percent.
Excluding the commercial tax, the cost of production of one ton of oil by the company in 2018 amounted to over 106.85 manat ($62.8), which is 6.42 percent more compared to 2017.
The increase in the cost of oil production in 2018, compared with 2017, is due to an increase in material costs by 31.1 percent - 7,404 manat ($4,355), expenses on wages by 11.7 percent - 13,093 manat ($7,701), payments on social insurance by 12.4 percent - 2,792 manat ($1,642), transportation expenses by 1.4 percent - 1,756 manat ($1,032), protection costs by 5.1 percent - 672,000 manat ($395,294), tax on trade by 1.4 percent - 947,000 manat ($557,058), other taxes by 10.1 percent - 3,973 manat ($2,337), as well as an increase in other services by 22.4 percent - 10,350 manat ($6,088).
Moreover, in 2018, SOCAR's oil production was 1.5 percent higher than in 2017 (over 7.5 million tons).
The share of SOCAR's Azneft Production Union accounted for over 6.2 million tons of oil (an increase of 1.4 percent), the share of joint ventures and operating companies developing onshore fields exceeded 1.2 million tons (an increase of 2.3 percent).
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