Oil and gas companies engaged in the development of the ‘Shah Deniz’ and Azeri-Chirag-Guneshli (ACG) fields in Azerbaijan within the framework of PSA contracts (Production Sharing Agreements) paid profit tax in the amount of 2 billion 995.2 million manats to the state budget of the country in the first half of 2023 ($1.762 billion).
According to the Ministry of Finance of the Republic of Azerbaijan, in January-June 2023, a tax in the amount of 2 billion 630.4 million manats was paid to the state budget of Azerbaijan within the framework of the ‘Shah Deniz: project, and 364.8 million manats within the framework of the ACG project.
Turan agency reminds that in the first quarter of 2023, the participants of the ‘Shah Deniz’ project paid income tax in the amount of 1 billion 545.7 million manats, the ACG project – 225.2 million manats.
Based on these data, it is possible to calculate payments to the state budget from these projects in the second quarter: from ‘Shah Deniz’ – 1 billion 84.7 million manats, from ACG – 139.6 million manats.
That is, for the second quarter of 2023, payments to shareholders of the ‘Shah Deniz’ and ACG projects decreased by 546.6 million manats compared to the figures of the first quarter. This is due to a drop in production and exports within the framework of the ACG project, as well as a decline in prices on the world oil and gas markets.
It should be noted that in 2023, the government of Azerbaijan predicts that the shareholders of ‘Shah Deniz’ and ACG will pay income tax in the amount of 4 billion 2 million manats ($2 billion 354.1 million): from ‘Shah Deniz’ – 3 billion 235 million manats, from ACG – 767 million manats.
In 2022, the participants of the ‘Shah Deniz’ and ACG projects paid profit tax to the state budget of Azerbaijan in the amount of 5 billion 393,904 million manats (+ 5.2 times the indicator of 2021). At the same time, in 2022, the participants of the ‘Shah Deniz’ project began paying income tax for the first time
Source: Turan News Agency