BAKU, Azerbaijan, January 12. The decrease in
the level of oil and gas revenue coverage for transfers from the
State Oil Fund of Azerbaijan (SOFAZ) to the state budget over the
years, as well as the increasing tendency of covering part of the
transfer through the liquidation of assets under the fund's
management, are factors necessitating careful monitoring in the
coming years, Trend reports.
This issue is reflected in the review of the Accounts Chamber on
the 2026 budget of SOFAZ.
The review emphasized that the net revenues from the sale of
hydrocarbons allocated to Azerbaijan make up the largest share in
the fund’s revenue structure.
"According to the data provided by the fund, it's predicted that
crude oil production in the Azeri-Chirag-Gunashli (ACG) field will
be 120.1 million barrels in 2026, which is three million barrels
less compared to 2025’s figure (123 million barrels), due to a
decrease in production. The peak production level of the
Azeri-Chirag-Gunashli field was 303 million barrels in 2010, and
since then, a consistent decrease in production has been observed.
Based on the provided data, the production volume in 2026 is
expected to be approximately 2.5 times lower than the peak period
(2010), with a reduction of 183 million barrels," the review
delineated.
The review noted that the sharp decline in oil prices and the
prolonged period of low prices, combined with a decrease in
production, creates the risk of reducing the revenues of SOFAZ and
the rapid depletion of its assets.
"Thus, the revenues from the sale of profit oil and gas in 2026
are predicted to amount to $5 million, with the government’s share
from the ACG field’s revenues reaching $4.23 million, or 84.2% of
total revenues," the review added.
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