Azerbaijan Today | The International Magazine

LAST NUMBER

	AZERBAIJAN WILL PRODUCE 63 MILLION TONS OF OIL BY 2010, SOCAR BELIEVES

By Azerbaijan Today Staff

The offie of the SOCAR

According to a statement made by SOCAR Senior Vice President Khoshbakht Yusifzade at a conference called "Caspian Oil & Gas - 2005," Azerbaijan will produce approximately 63 Million tons of oil by 2010 and approximately 30 billion cubic meters of gas: "50 million tons of oil will be produced in the "Azeri-Chirag-Guneshly" (ACG) field, and approximately 10 million tons in the SOCAR old fields. We also factored in 3 million tons a year from the "Shah-Deniz" field."

Azeri oil production in 2005 is forecast at 20.5 million tons, of which 11.5 million tons will come from ACG. Yusifzade said that from 2011-2012, Azerbaijan would produce over 30 billion cubic meters of gas as Stage-2 of the "Shah-Deniz" contract goes into force, and in 2015 they will produce 36.5 billion cubic meters.

AZERBAIJAN"S PROFIT FROM
"AZERI-CHIRAG -GUNESHLY"AND
"SHAH-DENIZ" MAY REACH $210 BILLION

At an international conference called "Strategic development of oil and gas resources of the Caspian," BP-Azerbaijan President David Woodward said that, depending on world oil prices, Azerbaijan's profit from the development of the "Azeri-Chirag-Guneshly" and "Shah-Deniz" offshore fields could total between $106 billion and $210 billion. He noted that the figure of $106 billion was based on an average world market price of $30 per barrel, while the $210 billion figure reflected a price of $50 per barrel. With an average price of $40per barrel, Azerbaijan would have $160 billion. BP-Azerbaijan also noted the importance of effective use of funds. According to Woodward, it is necessary to revive the education system, banking, and other sectors, which help create healthy competition and discourage corruption. "This is the only way to create a differentiated market economy and to provide privileges for the whole population of the country," Woodward said.