BAKU, Azerbaijan, June 9
By Fidan Babayeva - Trend:
The actual production in the block of the Azerbaijani Balakhani oil field amounted to 1.6 million barrels in 2020, which indicates the fulfillment of the forecast by 99.4 percent (1.6 million barrels), Trend reports referring to the conclusion of the Azerbaijan Chamber of Accounts on the implementation of the State Oil Fund of Azerbaijan’s (SOFAZ) budget for 2020.
The income of SOFAZ on this field amounted to $6.3 million, which is 46.95 percent more than the volume envisaged by the budget ($4.3 million). This is connected with the non-payment of the company's operating income tax in 2020, as well as the rise in oil prices at the end of 2020.
Balakhani field is being developed by Balakhani Oil's operating company.
The State Oil Company of Azerbaijan SOCAR and UGE-Lancer PTE signed the production sharing agreement (PSA) on rehabilitation, development on the onshore block of Balakhani-Sabunchi-Ramana and Kurdakhani fields in June 2010. The contract area is 16.14 square kilometers.
The contract was signed for 25 years with the possibility of an extension for five more years.
Lancer company received a 75-percent-share in the contract while SOCAR - 25 percent.
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