SOFAZ sees 36% surge in revenues from development of Shah Deniz in 1Q2025

In the first quarter of 2025, the State Oil Fund of Azerbaijan (SOFAZ) earned $107.028 million in revenue from the Shah Deniz field, located in the Azerbaijani sector of the Caspian Sea, the SOFAZ told Report.

This marks an increase of $28.53 million, or 36.3%, compared to the same period in 2024.

Additionally, SOFAZ's total revenues from oil and gas agreements during January-March 2025 amounted to 3.017 billion manats ($1.774 billion). This included 2.252 billion manats ($1.324 billion) generated from the sale of profit oil and gas, along with 765.3 million manats ($450.1 million) from bonus payments and transit revenues.

The agreement for exploration, development, and production sharing of the Shah Deniz field was signed on June 4, 1996, and ratified on October 17, 1996. The field, located 70 kilometers southeast of Baku, was discovered in 1999. In December 2013, the PSA term for Shah Deniz was extended from 2036 to 2046.

The participation shares in Shah Deniz are allocated as follows:

- BP (operator): 29.99%

- Lukoil: 19.99%

- TPAO: 19%

- NIKO: 10%

- Southern Gas Corridor: 16.02%

- MVM: 5%