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SOFAZ revenues from oil and gas fields hit $2.8bn in 2020

07 August 2020 [13:58] - TODAY.AZ

By Azernews

By Ayya Lmahamad

The revenues of the State Oil Fund of Azerbaijan (SOFAZ) from the major oil and gas fields amounted to $2.8 billion in the first six months of 2020, the Fund has reported.

During the reporting period, revenues from the Azeri-Chirag-Guneshli field, which is the largest oil field in the Azerbaijani sector of the Caspian Sea, amounted to $2.4 billion.

Moreover, SOFAZ’s revenues from the offshore Shah Deniz field gas filed, which is among the world’s largest gas-condensate fields, amounted to $215.5 million in the first six months of the year. Revenues from the sale of condensate from Shah Deniz field amounted to $149 million.

Established upon presidential decree in 1999, SOFAZ is Azerbaijan’s sovereign wealth fund, which accumulates and preserves the nation's oil and gas revenues for future generations. The fundamental mission of SOFAZ is to ensure intergenerational equality with regard to the country's oil wealth and to accumulate and safeguard the oil revenues for generations to come.

The Fund accumulates income from the sale of oil contracts, and in 2003 it started to make transfers to the state budget of Azerbaijan. As for now, SOFAZ’s contribution to the country’s GDP is over 80 percent.

The contract for the development of Azeri-Chirag-Guneshli (ACG) oil fields was signed on September 20, 1994 and entered into force in December. The contract for the development of ACG block was extended to 2050 in September 2017.

The shareholders in the Azeri-Chirag-Guneshli project are BP (operator, 30.37 percent), SOCAR (25 percent), American Chevron (9.57 percent), ExxonMobil (6.79 percent), Indian ONGC (2.31 percent), Japanese Inpex Corp. (9.31 percent), ITOCHU Oil (3.65 percent), Norwegian Statoil (7.27 percent) and Turkish TPAO (5.73 percent).

The contract on development of Shah Deniz gas field was signed in 1996. Shareholders of Shah Deniz project are: BP (operator, 28.8 percent), TPAO (19 percent), SOCAR (16.7 percent), Petronas (15.5 percent), LUKOIL (10 percent) and NICO (10 percent).


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