BAKU, Azerbaijan, March 22
By Leman Zeynalova – Trend:
The volume of investments made by Equinor in Azerbaijan stood at $213 million in 2020, Trend reports with reference to the company.
Its revenues totaled $322 million, while the cost of operations amounted to $102 million. Cost includes operating expenses, selling, general and administrative expenses, and exploration expenses, without net impairments as presented in the Consolidated financial statements.
Equity production volume in Azerbaijan stood at 13 mmboe.
Azerbaijan is one of Equinor’s largest and longest-standing international commitments. It has been operating here since 1992 and is one of the largest foreign investors.
Today Equinor has an interest in the Azeri-Chirag-Gunashli (ACG) oil field, as well as the Baku-Tbilisi-Ceyhan (BTC) pipeline—which runs from the Azerbaijan capital of Baku to the south Turkish port of Ceyhan on the Mediterranean.
Equinor and its international partners formed the Regional Sustainable Development programme which consists of the Community Investment Programme / Future Communities Programme and the Regional Development Initiative. Collectively these programmes ensure Equinor and its partners are responsible organisations that foster development and community empowerment near operations. In addition, Equinor, in partnership with the Norwegian government, has supported the Azerbaijani government to establish an oil fund based on the Norwegian model, as well as driven technical development of Azerbaijanis through collaborations with SOCAR and students.
On 30 May 2018 Equinor and SOCAR signed a Risk Service Agreement related to the appraisal and development of the Karabagh oilfield and a Production Sharing Agreement for the Ashrafi-Dan-Ulduzu-Aypara (ADUA) area in the Caspian Sea.
Equinor and SOCAR hold equal shares in both projects. The Karabagh oilfield is located 120 kilometres east of Baku, close to the SOCAR operated Shallow Water Gunashli (SWG) field and the BP operated Azeri-Chirag-Gunashli (ACG) field. In December 2019, Equinor started drilling the KPS-4 appraisal in water depth of approximately 180 meters. In March 2020, Equinor and SOCAR confirmed oil discovery in the Karabagh field. To operate the licence, Equinor and SOCAR established a 50-50 joint operating company.
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