Oil prices halve SOCAR’s revenue
BAKU, September 14, 2015 – The State Oil Company of Azerbaijan Republic (SOCAR) has reported its revenue was halved due to the falling price of oil.
The 2015 budget was calculated based on revenues of AZN19.4 billion ($18.5 billion) with an estimated oil price of $90 per barrel. Brent crude is now trading at $47 per barrel at 3.00pm GMT.
SOCAR expects to transfer far less money next year, as the budget has already lost more than $510 million in estimated revenue. Aside from the falling price of oil, the devaluation of the Russian rouble has also affected revenues.
The company also intends to obtain a AZN1.8-billion ($1.7-billion) loan from the central bank to continue construction on a $16.5-billion oil, gas and petrochemicals processing plant.
The oil and gas industry in Azerbaijan accounts for 75 percent of government revenue, and 95 percent of its exports.
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