Energy Ministry: If oil price remains unchanged decisive measures should be taken

Energy Ministry: If oil price remains unchanged decisive measures should be taken
# 02 June 2015 15:13 (UTC +04:00)

Baku. Agshin Rafigoglu – APA-Economics. Around 90% of Azerbaijan’s cash flow depends on oil and gas production. However, Azerbaijan is able to provide for itself, Energy Minister Natig Aliyev said in his interview to Business Year Magazine.

According to him, Azerbaijan has State Oil Fund in anticipation of any crisis: “Oil is not just our treasure, but also the treasure of future generations. All profits from oil products extracted at fields holding foreign investments must go to SOFAZ, and the main cash flow from production sharing agreements (PSAs) with foreign companies accumulates here”.

The Minister said that Azerbaijan is interested in reasonable oil prices in the future: “For many years we have been holding negotiations with OPEC countries. Many experts agree that a price just above $80 could have satisfied both exporters and consumers. Right now, the real price is $50-60, and we are not seeing the same profits as in 2014. This will diminish the volume of our currency, but will not damage us significantly”.

The minister underlined that a brief period ill not be too problematic: “But if this situation upholds much longer we will have to take more decisive measures”.

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