Bonus from Gas Production on Shahdaniz to be Allocated after Intensive Exploitation
Azerbaijan, Baku / Trend , corr I. Khalilova / Due to the delay in gas production on the Shahdaniz field, the bonus has not been alloted to the oil fund of Azerbaijan as yet.
Shahmar Movsumov, the chief executive of the State Oil Fund of the Azerbaijani Republic (SOFAR), reported that one of the terms is for intensive production of gas to take place during 60 days. As production has not yet commenced, the bonus has not been allocated. However, Movsumov is sure this will take place this year.
According to the Shahdaniz Project, Azerbaijan is to receive a $45mln bonus from its foreign partners due at the commencement of the gas production. The first gas on the field (1 trillion cu. m) was produced on 10 November, 2006.
In 2007 the Oil Fund is to receive a AZN 17.2mln bonus (over $20mln) from the Russian LUKOIL Company on the Caspian project Yalama (D-222), as well as a bonus from RussNeft Company due to the oil contract on the onshore fields of Govsanly-Zikh
SOFAR was founded in 1999 with the purpose of accumulating Azerbaijani Government income received from the implementation of international projects in oil and gas production. SOFAR's major tasks are the improvement of living conditions for the refugees and forced migrants in Azerbaijan, the victims of the Karabakh conflict between Azerbaijan and Armenia, as well as financing of strategic infrastructure projects.