SOFAZ's revenues from ACG block hit $1.9bn in Q1 2020

By Azernews

By Ayya Lmahammad

Revenues to the State Oil Fund of Azerbaijan from the sale of lucrative oil from the Azeri-Chirag-Guneshli block and condensate from the Shah Deniz field in January-April 2020 amounted to $1.9 billion, the Fund reported on May 4.

This includes $112 million from the sale of condensate from the Shah Deniz field, the Fund noted.

Overall, from 2001 to May 1, 2020, SOFAZ received $148.5 billion from the sale of lucrative oil from the ACG block.

SOFAZ also informed that total revenues of the fund from the sale of profitable gas produced from Shah Deniz field for the period from 2007 to May 1, 2020 amounted to $2.9 billion. In April, SOFAZ revenues from the sale of profitable gas from Shah Deniz field amounted to $59 million.

The contract for the development of Azeri- Chirag- Guneshli fields was signed on September 20, 1994 and entered into force on December 12 of the same year. A new contract was signed in 2017 in Baku for the development of ACG block, designed until 2050. The shareholders of the project are BP (operator, 30.37 percent), SOCAR (25 percent), American Chevron (9.57 percent), ExxonMobil (6.79 percent), Indian ONGC (2.31 percent), Japanese Inpex Corp. (9.31 percent) and ITOCHU Oil (3.65 percent), Norwegian Statoil (7.27 percent), Turkish TPAO (5.73 percent).

The contract on development of Shah Deniz field was signed in Baku on June 4, 1996 and ratified by the Parliament on October 17 of the same year. Shareholders of Shah Deniz project are: BP (operator, 28.8 percent), Petronas (15.5 percent), SOCAR (16.7 percent), LUKOIL (10 percent), NICO (10 percent), TPAO (19 percent).

The State Oil Fund of Azerbaijan was established in December 1999 by the Presidential Decree and is a sovereign wealth fund of Azerbaijan, which accumulates and preserves the nation's oil and gas revenues for future generations.