Oil, Gas Account for 93% of Azerbaijan’s Q1 Exports

Link to original author and article

Azerbaijan’s current account surplus for the first quarter of 2017 amounted to $380.2mn. the Central Bank of Azerbaijan reported. This compares with a current account deficit of $432.1mn in the same period of 2016. Oil and gas accounted for 92.9%, up from 91.2% in the same period of 2016.

According to the balance of payments, the surplus for the oil and gas sector for the first quarter of 2017 was $1.5bn, while in the non-oil sector the deficit was $1.1bn. 

The main economic indicators of Azerbaijan ($000): 

Name

Q1 2017

Q1 2016

Average cost of oil

$51/ barrel

$42/ barrel

Foreign trade turnover

5,221,625

22,214,687

CIS

12.5%

14,0%

Non-CIS

87.5%

86,0%

Export

3,555,749

13,210,511

Including: oil and gas sector

3,302,285 (92.87)

12,050,387 (91.22%)

Non-oil sector

253,464

1,160,124

Import

1,665,876

9,004,176

Including: oil and gas sector

273,534 (16.42%)

2,328,698 (25.86%)

Non-oil sector

1,392,342

6,675,478

Direct investments abroad

531,516

2,573,601

Including: in oil and gas sector

453,235

2,035,155

Non-oil sector

78,281

538,446

Oil and gas bonuses received

78

52

Repatriation of investments

633,095

2,810,809

 

In January-March of this year, Azerbaijan received a $78mn bonus payment under the framework of the Shah Deniz-1 project. NGW was told by the UK major BP, the operator, that it was payable on the basis of a special production-sharing agreement clause. If the contractor for the budget year extracts more than the planned targets approved by the Operating Committee, then a bonus is earned on the super profit, it said. In 2016, the extraction plan was about 10.1bn m³, although actual production amounted to 10.7bn m³.

According to the CBA, in the first quarter of 2017 the volume of foreign trade turnover amounted to $5.2bn and Azerbaijan had a surplus in foreign trade at $1.9bn. Exports of oil amounted to $ 2.8bn (77.78%) and oil products $124.5mn (3.45%). 

Imports amounted to $1.665bn, of which consumer goods accounted for a little over half: $864mn.

In January-March 2016, foreign direct investments in the Azerbaijani economy also amounted to $1.6bn. At the same time, 80.9% of foreign direct investment for the reporting period was in the oil and gas sector.

In the non-oil sector, the volume of foreign direct investment for the first quarter of 2017 was $310.3mn (up 31.1%).

According to the CBA, in January-March of this year, Azerbaijani companies carried out direct investments abroad in the amount of $531.5mn (31% decline), including $453.2mn in the oil and gas sector (down 18.9%) and $78.3mn in other sectors (down almost a third).

Azerbaijan’s direct investments abroad in the oil and gas sector were made mostly by state oil company Socar: the Trans Anatolian and Trans Adriatic pipelines, as well as the Georgian section of the South Caucasus Gas Pipeline project; the Star refinery (Turkey); the petrochemical complex Petkim (Turkey), the port Terminal Petlim (Izmir, Turkey), expansion of the network of gas stations in Romania and Ukraine; the sale of oil products and natural gas in Georgia, and electricity supply in Malta.

 

Azerbaijan desk