SOFAZ revenue from oil, gas fields hits $6.7bn

By Ayya Lmahamad

Revenue of the Azerbaijani State Oil Fund (SOFAZ) from the
country’s major oil and gas fields amounted to $6.7 billion in
January-July 2022, Azernews reports per SOFAZ.

The Azeri-Chirag-Guneshli block of fields, the largest oil field
in the Azerbaijani sector of the Caspian Sea, accounted for $5.6
billion of the revenues.

The fund’s revenues from the Shah Deniz field, which is among
the world’s largest gas-condensate fields, amounted to $1 billion,
including $252.7 million from condensate.

The fund’s earnings from the country’s major oil and gas fields
amounted to $6.8 billion in 2021, with Azeri-Chirag-Guneshli (ACG)
accounting for $5.9 billion of the revenue and Shah Deniz for
$884.7 million.

Established in 1999, SOFAZ is a sovereign wealth fund, which
accumulates and preserves Azerbaijan’s oil and gas incomes for
future generations.

The contract for the development of the ACG oil fields was
signed on September 20, 1994, and came into effect in December. The
contract for the development of the ACG block was extended by 2050
in September 2017.

The shareholders in the ACG project are BP (operator, 30.37
percent), SOCAR (25 percent), MOL (9.57 percent), INPEX (9.31
percent), Equinor (7.27 percent), ExxonMobil (6.79 percent), TPAO
(5.73 percent), ITOCHU (3.65 percent), ONGC Videsh Limited (OVL)
(2.31 percent).

The contract on the development of the Shah Deniz gas field was
signed in 1996. Shareholders of the Shah Deniz project are BP
(operator, 29.99 percent), LUKOIL (19.99 percent), TPAO (19
percent), SOCAR (14.35 percent), NICO (10 percent), and SGC (6.67
percent).

Ayya Lmahamad is AzerNews’ staff journalist, follow her on
Twitter: @AyyaLmahamad

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