SOCAR sees decrease in prime cost of oil and gas production

Oil&Gas Materials 6 December 2022 16:48 (UTC +04:00)
Laman Zeynalova
Laman Zeynalova
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BAKU, Azerbaijan, Dec.6. The prime cost of production of 1 ton of oil stood at 115.52 manat ($67.95) in 2021, down by 3.33 manat ($1.99) or 2.8 percent as compared to 2020, Trend reports with reference to Azerbaijan’s state oil company SOCAR.

The share of material costs in the total production costs of the company's oil production is 4.2 percent, salary costs accounted for 15.4 percent, social insurance contributions made up 3.6 percent, depreciation deductions accounted to 20.1 percent, repair costs stood at 8.3 percent, maintenance expenses 4.9 percent, transport expenses 10.5 percent, mining tax – 8.9 percent, other taxes – 5.6 percent.

This is while the prime cost of gas production amounted to 61.23 manat ($36.02), remaining almost unchanged from 2020.

The share of material costs in the total gas production costs of the company is 3.7 percent, while salary costs account for 12.1 percent, social insurance contributions – 2.7 percent, depreciation allocations - 20.8 percent, repair costs – 5.8 percent, maintenance costs – 5.2 percent, transport costs – 12.1 percent, mining tax – 18.6 percent.


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