Azerbaijan, Baku, Jan. 31 / Trend I.Khalilova /
Earnings of the state budget of Azerbaijan in income tax expenses from the Azerbaijan International Operating Company (AIOC) in 2012 totalled 1.418 billion manat, with an average oil price of $113.6 per barrel, the government told Trend.
AIOC is the operator developing a large block at the Azerbaijani Azeri-Chirag-Guneshli fields, where Azeri Light oil is produced.
"The state revenue from contracting companies exceeded expectations due to high oil prices and despite a decline in oil production in the country. Last year, the average price of Azeri Light oil was $113.6 per barrel, while the forecasted oil price was $100," the government said.
As a result of the 2012 state budget adjustment, oil prices projected for the second half increased from $80 to $100 per barrel.
Accordingly, the revenue forecast for AIOC increased as well by 470 million manat, to 1.28 billion manat as the planned volumes of payments at 810 million manat were achieved already in the first half of 2012.
In the first quarter, the average price on Azeri Light oil was $113 per barrel, and the proceeds from contractor companies have reached $412 million manat against expectations of 200 million manat. In the second quarter, revenues totalled 423.5 million manat, in the third quarter - 273 million manat (at an average oil price of $111.3) and in the fourth quarter - $310 million (at a price of $112).
In 2011, the company paid 1.315 billion manat to the state budget (with an average price of $114.2 per barrel).
AIOC deductions for income tax in 2010 amounted to 741.1 million manat, in 2009 - 513.2 million manat, in 2008 - 2.149 billion manat, in 2007 - over 2.5 billion manat.
The favourable situation in the world oil market allows the cost of Azerbaijani oil to stay at a level of more than 10 per cent above the price for a long time. Therefore, even with a decrease in oil production, the decline was 5.3 per cent in 2012 resulting in Azerbaijan received more money than expected.
In 2012, Azerbaijan produced 43 million tons of oil. In 2011, Azerbaijan produced 45.37 million tons compared to 50.83 million tons in 2010. Major oil output in the country falls to a large block of the Azerbaijani Azeri-Chirag-Guneshli fields and Shah Deniz gas condensate field, developed in cooperation with foreign partners.
The volume of marketable natural gas totalled 17.2 billion cubic meters (a 5.4 per cent increase) and total production reached 27.9 billion cubic meters last year.
Gas production in Azerbaijan reached 25.7 billion cubic meters of gas in 2011 compared to 26.23 billion cubic meters of gas in 2010.
Currently, the participating share of BP (operator) in Azeri-Chirag-Guneshli is 37.43 per cent, Chevron - 11.27 per cent, Inpex - 10.96 per cent, AzACG - 10 per cent, Statoil - 8.56 per cent, Exxon - 8 per cent, TPAO - 6.75 per cent, Itocu - 4.3 per cent and Hess - 2.72 per cent.
