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SOFAZ reveals volume of projected revenues from sale of oil and gas -TABLE

12 January 2026 12:24 (UTC +04:00)

Projected inflows from the sale of profit oil and gas of the State Oil Fund of the Republic of Azerbaijan (SOFAZ) for the next year are forecast to be 12.7% lower compared to the 2025 projection, against the backdrop of a decline in production volumes and the average annual export price of crude oil, APA-Economics reports.

This is stated in the opinion of the Chamber of Accounts on SOFAZ’s 2026 budget.

According to the report, in 2026 the net revenues obtained from the sale of hydrocarbons attributable to the Republic of Azerbaijan (after deducting costs for the transportation of hydrocarbons, banking, customs clearance, independent supervision (survey), marketing and insurance, as well as excluding revenues attributable to SOCAR’s investments or participation shares in projects where the State Oil Company of the Republic of Azerbaijan (SOCAR) is an investor, shareholder or partner) are forecast at USD 5,030 million or 8,551 million manats. This is 2,910.4 million manats, or 25.4%, less than the actual performance in 2024, and 1,246.3 million manats, or 12.7%, less than the 2025 forecast.

In determining the amount to be obtained from the sale of profit oil and gas projected to be transferred to the Fund in the draft 2026 budget of the State Oil Fund, the volume of profit oil and gas attributable to the Azerbaijani state from oil and gas production at the following fields has been taken into account:

Table 5. Key indicators for the Oil Fund’s profit oil and gas in 2026:

Name of the bed	2026 revenue (million USD)	2026 production (state share)
Name of the bed	2026 revenue (million USD)	million barrels	billion m3
Profit from the sale of oil and gas total	5 030	75.31	5.14
Azeri-Chirag-Guneshli	4 235.8	68.3
Shah Deniz field	532.6	5.4	4.8
Surakhani and Garachukhur deposits	3.3	0.05
Zykh-Hovsan field	1.6	0.03
Kursangi and Karabakhli fields	0.0	0.12
Neftchala and Khilli	0.8	0.02
Mishovdag and Kalameddin	1.5	0.02
Kurovdag	4.7	0.09
Balakhani-Sabunchu-Ramana and Kurdakhani	12.1	0.19
On the fields included in the Binagadi block	8.5	0.19
Qum-Deniz and Bahar deposits	4.8	0.025	0.033
Absheron JOCAP	88.1	0.88	0.305
In accordance with the Protocol of Agreement, SOCAR Payments to be made by	136.2

“The reason why revenues from the Kursangi and Garabaghli fields are not expected to be transferred to SOFAZ in 2026 under the USD 65.0 price scenario is explained by the reduction of the state’s profit share to 40% as a result of amendments made to the PSA, and the insufficiency of this share to fully cover the contractors’ tax obligations that must be paid from the state’s profit share,” the report notes.

According to the information provided, SOCAR’s stakes in the Shah Deniz and South Caucasus Pipeline projects were fully transferred to the Southern Gas Corridor CJSC on March 31, 2023, in accordance with the Deferred Share Purchase Agreement (DSPA). As stated in SOCAR’s letter addressed to the Fund dated June 25, 2023, although under the Agreement Protocol on the management of revenues attributable to SOCAR’s stakes in the Shah Deniz, South Caucasus Pipeline and Southern Gas Corridor projects by Southern Gas Corridor CJSC, payments were envisaged to be made to the State Oil Fund starting from 2025, no funds have been transferred to the Fund from this source as of the reporting date. At the same time, the Fund’s 2026 budget forecasts the receipt of USD 136.2 million from this source.

Information on SOFAZ’s budget revenues under the Agreement Protocol for 2026, mln. USD.

Payments made to SOFAZ under AP	Total debt	Payments						Forecast	Outstanding debt as of 30.09. 2025
Payments made to SOFAZ under AP	Total debt	2020	2021	2022	2023	2024	2025	2026	Outstanding debt as of 30.09. 2025
Price difference	150	41	81	27	0	0	0	0	0
"Shipbuilding" bonds	160	12	10	147	0	0	0	0	0
Gas debt	1 197	0	0	355	415	0	0	136.2	427
In SOCAR's SQD financing of share	914	0	0	0	0	0	0	0	914
Total:	2421	53	92	530	415	0	0	136.2	1341