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10:47 24 August
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SOCAR: Oil production in Azerbaijan costs on average $20

Baku. Agshin Rafigoglu - APA-Economics. “We sure that the oil price will rise again”, SOCAR Vice President for Investments and Marketing Elshad Nasirov said in his interview to Swiss SRF channel.

“The sharpest increase in oil price was recorded when the Bolsheviks occupied Baku in 1920 because ¼ of world oil were produced in Baku. We sure that the oil price will rise again”, Nasirov said.

 

Answering the question “Are you concerned over oil price decline?”, the Vice-President said: “Absolutely no!”.

 

“The oil price depends on various factors and this makes difficult to predict the price dynamics. Of course, economic issues play certain role, but there are also political factors which regulate the inter-state relations. Oil price may fall to $20, but this will not be long-term, because investment in oil sector will decrease. Today, a number of oil producing countries can produce the oil with lower initial cost. However, the supply will fall below demand”, Nasirov said.  

 

He added that the initial cost of oil production in Azerbaijan is below $25: “As you know, we have offshore and onshore extraction of oil. Compared to oil extraction from old onshore fields, the oil extraction from new offshore fields is more cost-effective. So, the oil production in Azerbaijan costs on average $20”. 

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