“A statue should be erected to him in “Azneft” square” |

20 September is celebrated as “Oilmen’s Day” in Azerbaijan. Pressklub.az Azerbaijan oil-gas state of the oil sector, revenues obtained over the past years, their spending and prospectsgas recognized expert in the sector Inspiration He learned the thoughts of Shaban.

– Inspiration sir, first we would like to know your views on the situation in the global energy market. Because his Azerbaijan the effects on the energy market are considerable. Will this turbulent period last much longer?

– Indeed, 2022 was and continues to be a tense year for the world economy: probably no one could have imagined that the post-pandemic period would progress in such an uneasy and, in some places, even painful ways, as at the end of last year, the current year of oil prices the predictions made about did not come true.

The predictions are upside down in the current year Europe It is caused by the fact that the continent has entered a situation that it has not seen since the Second World War, and it is perhaps unimaginable to see it. There is a reason for this: a sudden war, a very bloody and large-scale war. Its consequences are also serious, and many of its consequences will show themselves later. The removal of complications does not depend only on the news that the war will end as it began. Because the Western countries and the official successor of the Soviet Union Russia The energy trade between the Federation, which started in the mid-60s of the last century, is already entering the twilight period.

If not this year, then in the next few years this trade is bound to develop even to the point of complete cessation. Trade develops where, in addition to mutual trust, gentle relations are established between the seller and the buyer. These relations later show themselves in political relations, culture and tourism. The relations I am currently listing are with the West Russia Although it is no longer at the stage of “burning bridges built over the years”, it is aimed at stopping traffic on those bridges. Last year Russia Europe 155 in the market billion cubic meters gas had sold, this year, according to the latest estimate issued by the Russian government these days, this indicator is approximately 50 billion cubic meters will be less. Of course, the following years will be even lower.

That’s why raw materials markets are experiencing turbulent times and the market is extremely high prices is also its result. I believe that the expensive period of oil and gas prices in the global market will continue for several more years.

– From what you said, it can be understood that what is happening in the global market, whose economy depends on energy Azerbaijan creates additional opportunities for

– Yes, in terms of income, it is directly like that. According to the official published statistics, in the 8th month of 2022 Azerbaijan oil revenues 13.72 billion dollarsand gas revenues 10,32 billion dollars organized. The country’s total exports exceeded 26 billion dollars. This happened at that time in the country report During the period, the volumes of commercial oil and condensate production decreased by 1 million 198 thousand tons. Do you know how much it makes when you turn that into a barrel? About 9 million barrels. Therefore, the price in the market has a great impact on the profit of our country.

Let’s pay attention to the income of the State Oil Fund from only one project – “Azeri-Chirag-Guneshli” project in 8 months of the current year. In reality, this is the state’s share of profit – 6 billion 629 million dollars. Now let’s look at the results of 8 months of last year – 3 billion 488.5 million dollars. An increase of 90% (!). The almost 2-fold increase in profit took place against the backdrop of a decrease of more than 1 million tons in production in the largest oil field block in Azerbaijan.

– Speaking of ACG. After all, “Oilmen’s Day” of Azerbaijan is related to this project. Did ACG as a project live up to the expectations placed on it?

– Unequivocally, yes. 28 years ago Azerbaijan he was able to realize whatever goals he had set for himself when he signed the first oil contract: What could be the dream of a country that has just gained its independence and, unlike other post-Soviet countries, has problems such as the erosion of territorial integrity, the flow of 1 million refugees, hyperinflation, and even the delay of salaries in the public sector for months? To use the available potential, to be able to turn something into capital and achieve the elimination of the problems I listed. But what did Azerbaijan have that could be turned into capital in the global market? Oil. Azerbaijan took advantage of this: 33 months after the operating company started operating, the contract concluded on the “Azeri”, “Chirag” and “Deep Guneshli” fields produced the first oil. Finally, in December 1999, Azerbaijan received the first batch of profit oil, and on December 24, the State Oil Fund was established by the Decree of the President of Azerbaijan. The fund was supposed to collect the profits falling on the share of the Azerbaijani state from joint production activities with foreign companies and increase the funds under its management.

As of September 1, 2022, the Oil Fund will receive 162 billion 2 million dollars from the Azeri-Chirag-Guneshli project alone. funds entered. Summarizing what I said, the ACG ensured the economic revival of the country that had just gained its independence, it ensured that Azerbaijan, as a young country, had relations with huge countries and rose to the level of strategic partnership with some of them. increases. From this point of view, ACG not only plays the role of the backbone of Azerbaijan’s economic sovereignty, but also national emerged as an important element of our security. Our territories that have been occupied for three decades free I would especially like to emphasize the solution of the strategic issue of making and restoring them.

– Is Azerbaijan’s profit from ACG only the funds collected for the Oil Fund?

– No. Azerbaijan receives income from the ACG project in several directions. Income to the Oil Fund is the main part of that income, but not all. The second largest revenue is taken by the government. This income is the 25% profit tax paid by ACG shareholders according to the terms of the contract. Later in the ACG agreement SOCAR He participates with a 25% share, of course, he gets a profit according to his share.

Later, the State Social Transfers paid by participants, contractors and subcontractors of the ACG project to the Defense Fund. Now imagine, from the beginning of 1995 – when the ACG began to operate taxtransfer to the pension fund, how much innovation the “Contract of the Century” brought to a country where the so-called white accounting was not real and how much funds included in the budget.

This is not the end. Basically, in the last 15 years, Azerbaijani companies, whether they are state or private, started to receive millions of revenues from the projects implemented by ACG every year within the framework of service contracts. Not with manats, but with dollars.

– But for some reason, the government is silent about such information. What do you think the government’s interest in this is? Why are the revenues brought to our country by the “Contract of the Century” not disclosed in all their spectrums?

– Of course, only the government can give a complete answer to this question. What I have observed is that the task set by the head of state in front of the government is a strategic goal such as the development of the non-oil sector. That is why the government ignores issues related to the non-oil sector in all its reports. The message to the society is that it is known where the oil and gas sector came from, now look at how we spend the revenues it brings on the development of non-oil sectors.

In general, there is nothing bad here. However, it is not desirable to present the role of one sector to the society at the cost of overshadowing the real position of the other sector in the economy.

I will tell you just one fact. According to the results of the 8th month of the current year, the specific weight of the oil and gas sector in the total export of Azerbaijan has increased to 92.82%. We’ll be right back 10 year ago, State Customs Committee According to the results of the 8th month of 2012, this indicator was 93.4%. But 10 A year ago, Azerbaijan produced 880,000 barrels of oil and condensate per day, but according to the Ministry of Energy, this figure is 641,000 barrels. That is, although the rate of decrease in liquid hydrocarbon production is more than 27 percent, the specific weight of the oil and gas sector in the total export of the country has decreased by only 0.62%.

– Why is that?

– Because our gas production is increasing. As oil dwindles, natural gas begins to take its place. In the last 5 years, the production of commercial gas in Azerbaijan has almost doubled, and since the interest in the blue fuel has also increased its price, the oil and gas sector, despite the fact that the government has largely “watered” the non-oil sector with “oil resources” since 2015. , still able to maintain their positions.

In a word, I want to conclude our conversation with the idea that I repeat every year: the Azerbaijani oilman has a profession that deserves a magnificent statue to be erected to him in the “Azneft” square, as a result of his selfless work, a country was created that arouses feelings of love in some, envy in some, and irritation in some!

Turgut