SOCAR announces cost of natural gas

In 2019, the actual production cost of 1,000 cubic meters of natural gas amounted to AZN 61.89 (AZN 4.29 or 7.4% more than 2018), said the State Oil Company of Azerbaijan (SOCAR) annual report on its activities in 2019.

The share of material expenses in the total gas production of the company is 4.4%, salaries - 10.9%, social insurance - 2.8%, depreciation - 25.1%, repair - 7.5%, maintenance - 4.9%, transport - 13%, mining tax - 17.8%. The cost of 1,000 cubic meters of commercial gas for the company increased by AZN 4.29 (7.5%) compared to 2018.

Besides, the actual cost of 1,000 cubic meters of gas sold by SOCAR in 2019 amounted to AZN 140.46, taking into account the price of gas received from the Operating Company under the production terms Sharing Agreement, gas processing, storage, and transportation costs.

The increase in gas was due to a rise in material, electricity, salary, fixed assets maintenance, security, other taxes, and services. Thus, material and component costs increased AZN 702,000 (5.3%), salary - AZN 4,634,000 (15.5%), fixed assets maintenance - AZN 949,000 (6.5%), security - AZN 3,793,000 (75.5%), other taxes - AZN 2,551,000 (21.9%) and other services - AZN 3,853,000 (41.6%).