SOCAR reveals actual cost price of 1,000 cubic meters of gas

In 2020, the actual cost price of 1,000 cubic meters of gas produced by the State Oil Company of Azerbaijan (SOCAR) amounted to AZN 61.27 (USD 36.06), reads the annual report (2020) of the State Oil Company of Azerbaijan (SOCAR).

Report informs, citing SOCAR, that this figure is AZN 0.62 (USD 0.36) or 1% less than in 2019.

According to the report, the share of material costs in the total gas production costs of the company is 3.4%, salary costs 13.9%, social insurance contributions 2.9%, depreciation allocations 18.2%, repair costs 8.2%, maintenance costs 4.7%, transport costs 14.5% and mining taxes 17.7%.

Taking into account expenditures of SOCAR for gas production, other costs of the Production Association, the cost of gas received from the Operating Company under the terms of the agreement on sharing production, costs of processing, storage and transportation of gas, in 2020 the actual cost of 1,000 cubic meters of gas was AZN 140.24 (USD 82.54).