Tax revenue forecasts for ACG and Shah Deniz projects surge sharply

This year, the forecast for profit tax revenues from contractor organizations operating under production sharing agreements for the "Azeri-Chirag-Gunashli" (ACG) project has increased by 280 million manats (75.7%), and for the "Shah Deniz" project by 325 million manats (20.2%), Azernews reports citing the Ministry of Finance's report on year-end expectations.

"The forecast for revenues has been increased due to the recalculation of the state budget's income based on the revised average export price of 'Azeri Light' crude oil, which has been set at 75 USD per barrel, up by 15 USD from the 2024 approved figures, as well as the average export price of oil being 87.2 USD per barrel for the fourth quarter of 2023 and January-March of this year," the report says.

Thus, 43.7% or 2 billion manats of the tax revenues from the oil and gas sector come from the taxes of the State Oil Company of Azerbaijan, 14.2% or 650 million manats from the profit tax of contractor organizations operating under production sharing agreements for the "Azeri-Chirag-Gunashli" project, and 42.1% or 1.93 billion manats from the profit tax of contractor organizations operating under production sharing agreements for the "Shah Deniz" project.

With the revision of the state budget for 2024, the state budget revenues are approved at 36.388 billion manats, including oil and gas revenues at 17.769 billion manats. The transfer from the State Oil Fund is expected to be 12.781 billion manats.