SOFAZ: Rise in sales price for Shah Deniz gas to increase government revenues

Net revenues from the sale of hydrocarbons attributable to Azerbaijan have the biggest share in the structure of revenues of the State Oil Fund of Azerbaijan (SOFAZ), Report informs referring to the Opinion of the Chamber of Accounts on the budget of the Fund for 2022.

According to the Fund, in 2022 the volume of crude oil production at the Azeri-Chirag-Guneshli (ACG) field is projected at 170.1 million barrels, which is 1.5 million barrels less than in 2021 (171.6 million barrels).

According to the draft decree, in 2022, the Fund’s income from the sale of profitable oil and gas is projected at $5,046.5 million or 8,578,995,400 manats, which is 1,991.7 million manats or 30.2% more than the execution indicator in 2020, 2,139.7 million manats or 33.2% than the forecast for 2021, and 2,024.2 million manats or 19.1% less than the expected execution indicator.

Despite a decline in daily oil production from the ACG field in the forecast for 2022, a significant increase is expected, based on new contracts, in the sale price of gas from the Shah Deniz field. In this regard, it is safe to say that the state’s revenues from the field will increase, and in 2022 the additional income will amount to about 6-7% of the forecast indicator of the sale of profitable oil and gas.