SOCAR announces base price of oil and gas production

In 2018, the base price was AZN 117.92 for a ton of SOCAR’s oil and AZN 57.60 for 1,000 cubic meters of gas – respectively up AZN 6.5 or 5.8% and AZN 4.59 or 7.4% from 2017, Report informs citing SOCAR.

It was noted that the increase of base price of oil was caused by growth of AZN 7,404,000 or 31.1% in material costs, AZN 13,093,000 or 11.7% in wages, AZN 2,792,000 or 12.4% in social insurance costs, AZN 1,756,000 or 1.4% in transport costs, AZN 672,000 or 5.1% in protection costs, AZN 947,000 or 1.4% in mining tax, AZN 3,973,000 or 10.1% in other taxes and AZN 10,350,000 or 22.4% in other services.

Decrease in the base price of gas was due to decline of AZN 1,765,000 or 2.1% in amortization of main funds, AZN 4,071,000 or 21.7% in capital repair costs, AZN 7,190,000 or 21.7% in technical services expenses, AZN 3,029,000 or 24.6% in expenses for other services, AZN 3,170,000 or 43.7% on other expenditures.

The cost of SOCAR’s gas was 155.75 for 1,000 cubic meters, including expenses on price, refinery, storage and transportation of gas bought from Operating Company in accordance with the term of PSA.