SOCAR announces cost price of 1 ton of oil

In 2020, the actual cost of 1 ton of oil produced by the State Oil Company of Azerbaijan (SOCAR) amounted to AZN 118.85 (doün AZN 4.97 or 4% from the previous year), SOCAR stated in the annual report for 2020, Report informs.

The share of material in the total production costs of the company's oil production is 3.4%, salary costs 16.4%, social insurance contributions 3.4%, depreciation allowances 19.5%, repair costs 9.1%, maintenance expenses 5.1%, transport costs 15.4%, mining tax 8.1% and other taxes 5.7%.

Considering the transportation of oil and other expenses of the Production Association, the cost of 1 ton of oil amounted to AZN 153.56.