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: .
â€˘ 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; .
On 30th of May State Oil Company of Azerbaijan Republic (SOCAR) and Statoil Azerbaijan, part of Norwayâ€™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, Equinorâ€™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: â€śToday 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.â€ť .
Eldar Saetre, President and CEO of Equinor, said: â€śThe 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.â€ť .
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 SOCARâ€™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 Bankâ€™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.
â€˘ New deal to explore new Caspian opportunities
â€˘ Potential to support Azerbaijanâ€™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 Azerbaijanâ€™s President Ilham Aliyev and UK Prime Minister Theresa May, by Rovnag Abdullayev, President of SOCAR, and BPâ€™s Group Chief Executive Bob Dudley.
Speaking at the signing event Mr Abdullayev said: â€śWe 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, todayâ€™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.â€ť .
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.read more
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