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Equinor discloses amount of payments to SOCAR

Oil&Gas Materials 27 March 2023 11:45 (UTC +04:00)
Equinor discloses amount of payments to SOCAR
Laman Zeynalova
Laman Zeynalova
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BAKU, Azerbaijan, March 27. The payments of Equinor to Azerbaijan’s state oil company SOCAR amounted to $701.6 million in 2022, as compared to $514.7 million in 2021, Trend reports citing Equinor.

As such, Equinor’s payment to SOCAR grew by 36.3 percent year-on-year.

The company paid $0.3 million to Azerbaijan’s State Oil Fund (SOFAZ) and $39.4 million to the country’s Main Tax Office.

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.

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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