SOFAZ revenues from oil, gas fields hit $4.3bn

By Azernews

By Ayya Lmahamad

The Azerbaijani State Oil Fund (SOFAZ) revenues from the country’s major oil and gas fields amounted to $4.3 billion in January-May 2022, Azernews report per SOFAZ.

The Azeri-Chirag-Guneshli block of fields, the largest oil field in the Azerbaijani sector of the Caspian Sea, accounted for $3.8 billion of the revenues.

The fund’s revenues from the Shah Deniz field, which is among the world’s largest gas-condensate fields, amounted to $526.5 million, including $144.5 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 revenues 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, 28.8 percent), TPAO (19 percent), AzSD (10 percent), SGC Upstream (6.7 percent), PETRONAS (15.5 percent), LUKOIL (10 percent), and NICO (10 percent).