SOFAZ revenue from oil, gas fields hits $9.5bn

By Azernews

By Ayya Lmahamad

Revenue of the Azerbaijani State Oil Fund (SOFAZ) from the country’s major oil and gas fields amounted to $9.5 billion in January-October 2022, Azernews reports per SOFAZ.

The Azeri-Chirag-Guneshli block of fields, the largest oil field in the Azerbaijani sector of the Caspian Sea, accounted for $8.3 billion of the revenue.

The fund’s revenue from the Shah Deniz field, which is among the world’s largest gas-condensate fields, amounted to $1.2 billion, including $328.5 million from condensate.

The fund's earnings from the country’s major oil and gas fields amounted to $6.8 billion in 2021, with Azeri-Chirag-Guneshli (ACG) accounting for $5.9 billion of the revenue and Shah Deniz for $884.7 million.

Established in 1999, SOFAZ is a sovereign wealth fund, which accumulates and preserves Azerbaijan’s oil and gas incomes for future generations.

The contract for the development of the ACG oil fields was signed on September 20, 1994, and came into effect in December. The contract for the development of the ACG block was extended by 2050 in September 2017. The shareholders in the ACG project are BP (operator, 30.37 percent), SOCAR (25 percent), MOL (9.57 percent), INPEX (9.31 percent), Equinor (7.27 percent), ExxonMobil (6.79 percent), TPAO (5.73 percent), ITOCHU (3.65 percent), ONGC Videsh Limited (OVL) (2.31 percent).

The contract on the development of the Shah Deniz gas field was signed in 1996. Shareholders of the Shah Deniz project are BP (operator, 29.99 percent), LUKOIL (19.99 percent), TPAO (19 percent), SOCAR (14.35 percent), NICO (10 percent), and SGC (6.67 percent).