SOCAR unveils oil and gas production cost

Baku. 30 November. REPORT.AZ/ Cost of oil produced by the State Oil Company of Azerbaijan Republic (SOCAR) in 2015 was AZN 94.74/ton, that of natural gas AZN 39.74 per thousand cubic meters.

Report informs, referring to annual report of the company, production cost of oil up by AZN 3.11 or 3.4%; production cost of natural gas up by AZN 2.55 or 6.8% in comparison with production costs in 2015.

According to report, overall production cost of oil in previous year was AZN 697.230 mln., including material costs – 4.3%, wages and salaries – 14.6%, social spending – 2.9%, amortization assignments – 17.5%, repair costs – 10.4%, technical maintenance of primary resources – 2.1%, transportation costs – 18.6%, mining tax – 10.7%, etc.

Overall production cost of natural gas was AZN 240.142 mln., including material costs – 3.5%, wages and salaries – 9.9%, social insurance allocations – 2.0%, amortization assignments – 31.1%, repair costs – 9.0%, technical maintenance of primary resources – 1.8%, transportation costs – 17.2%, mining tax – 14.9%, etc. Cost of 1000 cbm. marketable gas produced by company up by AZN 2.55 (6.8%) in comparison with 2014.

The report says, production cost of oil increased as a result of growtj in amortization costs, transport expenditures, other taxes, other services and other expenditures. Thus, cost of amortization of primary resources increased by AZN 19.888 mln. (19.4%), technical maintenance of primary resources – AZN 0.333 mln. (2.3%), transportation costs – AZN 18.487 mln. (16.7%), other taxes – AZN 6.047 mln. (20.6%), other services AZN 4.819 mln. (15.6%), other expenditures – AZN 12.326 mln. (49.1%).

Growth in production cost of natural gas was as a result of increasing amortization costs, transport expenditures, security services, other taxes and other expenditures in comparison with 2014. Thus, cost of amortization of primary resources rose by AZN 3.295 mln. (4.6%), transportation costs – AZN 1.280 mln. (3.2%), security cost – AZN 0.748 mln. (22.0%), other taxes – AZN 1.642 mln. (20.0%), other expenditures – AZN 0.629 mln. (13.14%).