SOFAZ makes over $5B from profit oil & gas sale

Revenues of the State Oil Fund of Azerbaijan (SOFAZ) from the sales of profit oil and gas, produced as part of production sharing agreements (PSAs) at the country’s onshore and offshore fields, totaled $5.19 billion in 2016, according to the SOFAZ annual report.

According to the report, $5.1 billion (98.3 percent) of this amount accounted for the sales of profit oil and gas from the Azeri-Chirag-Gunashli block of fields. Meanwhile, $64 million accounted for the Shah Deniz field, $8 million – for the Balakhani-Sabunchu-Ramana, $5.6 million – for Binagadi, $4.5 million – for Kurovdag, $3.1 million – for Surakhany, $1.4 million – for Zig-Hovsan, $1.2 million – for Kursenghi-Garadaghly, $0.7 million – for Gum Deniz and Bahar, $0.4 million – for Neftchala and Khylly.

The report also says that SOFAZ’s revenues from asset management amounted to $688.5 million in 2016. The Fund’s assets were invested in fixed income, equities, real estate and gold. The average annual rate of return from SOFAZ’s investment portfolio was 1.92 percent in 2016.

During the period, bonus payments to SOFAZ in connection with oil and gas contracts amounted to $51,300.

In 2016, SOFAZ obtained $11.3 million as transit fees for the transportation of oil and gas through the territory of Azerbaijan by the Azerbaijan International Operational Company (AIOC).

Moreover, $2.1 million of acreage fees was transferred to SOFAZ in accordance with the offshore exploration and production sharing agreement between SOCAR and the oil company co-owned by SOCAR and BP Exploration Limited (Azerbaijan) over the Shafag-Asiman field in the Azerbaijani sector of the Caspian Sea.


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