BAKU, Azerbaijan, June 10
By Fidan Babayeva – Trend:
Actual production from the Zigh-Hovsan block of oil fields amounted to 430,000 barrels in 2020, which is 10.4 percent less than the forecast, Trend reports referring to the report of the Chamber of Accounts on the budget of the State Oil Fund of Azerbaijan (SOFAZ).
According to the report, the forecasted figure was 480,000 barrels.
Revenues from this block of oil fields amounted to $722,100, having topped the forecast by 15 percent, said the report.
“Failure to fulfill the forecast for oil production is related to COVID-19, suspension of drilling amid falling prices for hydrocarbons in the global market and restrictions on the production of raw materials in accordance with the OPEC + agreement. The increase in revenues, compared to the forecast is due to the increase in oil prices at the end of 2020,” the report reads.
On November 3, 2006, the State Oil Company of Azerbaijan (SOCAR) and Russneft Absheron Investments Limited signed an agreement ‘On the restoration, development and share distribution of production from the Zihh and Hovsan block of oil fields in Azerbaijan.’ The agreement entered into force on October 8, 2007.
The total area of the territory stipulated in the agreement is 68.81 square kilometers.