BAKU, Azerbaijan, Nov.13
By Leman Zeynalova – Trend:
The average cost of producing one ton of oil by the Azerbaijani state company SOCAR amounted to 117.92 manat in 2018, or 16 manat ($9) per barrel, Ibrahim Ahmadov, deputy head of the public relations and events department at Azerbaijan’s state oil company SOCAR, told Trend.
“Production cost depends on the development stage of a field, geological structure, its location (onshore or offshore) and other factors. On average, the highest prime cost of oil production by SOCAR is recorded in onshore oil fields, since they are at the last stage of development, have large quantities of water and relatively low productivity. Productivity of newer fields, such as Guneshli is significantly high. The prime cost of oil production at this field can be twice lower than the average prime cost of production by the company,” said Ahmadov.
He pointed out that in general, the prime cost of oil production by SOCAR is quite low despite the complexity of geological structures, where the company operates and the long period of development of fields.
“As for the prime cost of oil production in Azerbaijan, taking into account other operators, it is even lower on average, since these operators are developing newer fields with the highest level of productivity in the country,” he said, adding that these estimations take into account only operating costs.
---
Follow the author on Twitter: @Lyaman_Zeyn