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SOCAR’s profit increased sixfold in 2017

According to audited financial statements, SOCAR's gross profit in 2017 increased by 78% to AZN 92.6 billion. Compared to the results for 2016, the net profit increased nearly 6 times reaching AZN 2.09 billion. SOCAR increased its total assets by 16% to AZN 61.3 billion.
The financial results and indicators for 2017 exceed the results achieved before crisis in the oil industry. These positive financial results can be attributed largely to the following: .

• In 2017, SOCAR almost tripled the volume of oil and oil products purchased from third parties, which resulted in the growth of overall trade turnover by more than double; .

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SOCAR and Statoil (Equinor) agree to new joint upstream projects in the Caspian Sea

On 30th of May State Oil Company of Azerbaijan Republic (SOCAR) and Statoil Azerbaijan, part of Norway’s Equinor group signed a Risk Service Agreement (RSA) Related to the Development of the Karabagh Oilfield in the Azerbaijan sector of the Caspian Sea and an Agreement on the Exploration, Development and Production Sharing (PSA) for the Ashrafi -Dan Ulduzu -Aypara Area in the Azerbaijan sector of the Caspian Sea. Rovnag Abdullayev, President of SOCAR and Tim Dodson, Equinor’s executive vice-president for exploration signed the documents.
An appraisal well drilling in the Karabagh oilfield is scheduled for 2018, according to the terms of RSA, with commissioning of the platform and first production planned for 2021. Under the PSA, seismic acquisition will be carried out, with exploration drilling to be scheduled. To operate the projects Statoil and SOCAR will form a 50-50 joint operating company.

President of SOCAR Rovnag Abdullayev said: “Today we enter a new phase of cooperation between SOCAR and Equinor. 25 years of partnership between our companies have laid a solid foundation for efficient cooperation on the new joint projects. These agreements will take on significance, contributing to the stability of oil production and satisfying the growing demand for natural gas in Azerbaijan, while providing raw materials for the processing industry.” .

Eldar Saetre, President and CEO of Equinor, said: “The agreements signed today represent a natural next step in the region. This will strengthen our position in a prolific basin and develop growth options. The licenses lie in close proximity to the ACG field in a basin we know well. We now look forward to work on these new exploration projects in partnership with SOCAR.” .

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World Bank’s Global Gas Flaring Reduction Partnership hopes to learn from and share Azerbaijan’s experience

The World Bank, Global Gas Flaring Reduction Partnership (GGFR) held its annual meeting in Azerbaijan for the first time on May 7-8, 2018.
The meeting coincided with the 10th anniversary of the cooperation between SOCAR and the World Bank working toward the elimination of global warming and climate change. As a result of the project implemented jointly by SOCAR, BP and the GGFR approximately 4.5 billion cubic meters of flaring gas have been utilized in recent years.

The participants of the meeting will visit SOCAR’s production sites to learn from the experience of Azerbaijan on gas flaring reduction, its achievements, as well as the possibility of sharing this knowledge throughout the world. 50 senior officials and experts represent 18 countries and 13 international oil and gas corporations at the GGFR annual meeting. The opening session was attended by Rovnag Abdullayev, President of SOCAR, Mukhtar Babayev, Minister of Ecology and Natural Resources of the Republic of Azerbaijan, Rafiga Huseynzade, SOCAR Vice President for Ecology, Naveed Naqvi, World Bank’s Country Manager for Azerbaijan, Europe and Central Asia, Christopher Gilbert, GGFR manager, Ghulam Isaczai, UN Resident Coordinator and UNDP Resident Representative in Azerbaijan, senior managers of BP, Chevron, Exxon, Norwegian Petroleum, Shell, Statoil, Total and other leading oil and gas companies.

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SOCAR and BP sign new production sharing agreement for Azerbaijan exploration

• New deal to explore new Caspian opportunities

• Potential to support Azerbaijan’s long-term production

SOCAR and BP today signed a new production sharing agreement (PSA) for the joint exploration and development of Block D230 in the North Absheron basin in the Azerbaijan sector of the Caspian Sea.

The PSA was signed in London, in the presence of Azerbaijan’s President Ilham Aliyev and UK Prime Minister Theresa May, by Rovnag Abdullayev, President of SOCAR, and BP’s Group Chief Executive Bob Dudley.

Speaking at the signing event Mr Abdullayev said: “We have a long tradition of successful cooperation with BP. I believe that the synergies between modern upstream technology and unique historical experience, embodied at both companies, create a solid foundation for our continued success. Being based on fair and equal conditions, today’s agreement will become an important milestone in the pursuit of the highest degree of efficiency in the joint development of the hydrocarbon resources of Azerbaijan.” .

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The State Oil Company of Azerbaijan… at a glance

Discover SOCAR

The State Oil Company of the Azerbaijan Republic (SOCAR) is involved in exploring oil and gas fields, producing, processing, and transporting oil, gas, and gas condensate.

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International ratings

When investors and credit organizations wish to cooperate with any company, first of all the international rating of the company in discussion is reviewed.

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