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Center for Economic and Social Development (CESD)
Better Research, Better Policy, Better Reform
Azerbaijani Oil Income in
May 2015
© Center for Economic and Social Development (CESD)
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AZERBAIJAN
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Baku, June 05, 2015
Center for Economic and Social Development (CESD)
Azerbaijani Oil Income inMay 2015
Azerbaijan exported 1.692 million tonnes crude oil in May 2015. Crude oil export decreased by
around 1.0 % in May 2015 compare with previous month. Meanwhile, the country exported 169
thousand 559 tons of crude oil from the Novorossiysk Port, 169 thousand 425 tons of crude oil
from the Supsa Port, and 1 million 352 thousand 966 tons of crude oil from the Ceyhan Port in
May 2015.In general, 678 thousand 46 tons of crude oil were exported from the Novorossiysk
Port, 1 million 185 thousand 880 tons of crude oil - from the Supsa Port, and 7 million 278
thousand 248 tons of crude oil from the Ceyhan Port during January-May 2015. The indices of
crude oil exported by the SOCAR reflect the volumes of crude oil belonging to both State of
Azerbaijan and Company.
The cost of a barrel of BTC FOB Ceyhan in May 2015 was $ 65,16 US. The Azeri crude oil
price by 5.8 % compared with previous month since the Azerlight’s price was $61.42 US in
April 2015.
CESD reports that in spite of the fact that oil price increased in the world market, SOCAR and
the consortium target keeping monthly oil export around 1.7 million tons. However, due to high
demand for investments, oil output in Azerbaijan will likely be decreased in the second half of
2015 in the light of the low oil price in the world market.
Center for Economic and Social Development (CESD)
Azeri Oil Price in the World Market, $/barrel
since the price dropped
113.21
108.68
103.08
98.29
89.51
79.7
68.4
59.9
57.3
61.4
65.2
49.4
Source:State Oil Company of Azerbaijan Republic and CESD calculations, June 2015
The graph shows that Azeri oil price has increasedstarting March 2015 compare with the
previous months. However, the oil price has been decreased around 2.0 times since June, 2014.
Center for Economic and Social Development (CESD)
1.76
1.56
Volume of Azeri crude oil export and total
income from oil export since the oil price
dropped
1.74
1.59
1.71
1.65
1.61
1.54
1.42
1.39
1.4
1.25
1.35
1.17
1.25
1.249
0.77
0.82
1.04
0.89
0.72
0.76
0.81
0.6
Volume of export, million barrels
Total İncome, with billion USD
Source: State Oil Company of Azerbaijan Republic and CESD calculations, June 2015
The graph shows that oil income in May2015 increased by 6.1 % compared previous month
meanwhile the export volume slightly decreased, but the price has also increased in the indicated
period. However, total monthly income is still far behind of last summer’s monthly incomes. If
the country received only $ 820million US in April2015, but income was $ 1.76 billion US in
June 2014. It confirms that dropped oil price in the world market has dramatically decreased
Azerbaijan’s revenues.
Note that, gross income implies the currency entering to the country from sale of oil included
with AIOC oil revenues. Profit after deducting costs from revenues defined the amount of oil in
value. This is sharing in accordance with the production sharing funds between the Government
of Azerbaijan and AIOC.
© CESD, 2015