SOCAR slightly reduces cost of gas production

In 2021, the actual production cost of 1,000 cubic meters of gas at the oil and gas extraction departments of the State Oil Company of Azerbaijan (SOCAR) was 61.23 manats ($36.02).

Report informs, citing SOCAR, that this has almost remained the same compared to 2020.

In addition to the costs of gas production at SOCAR, the actual cost of 1,000 cubic meters of gas sold at SOCAR in 2021 was 121.9 manats ($71.71), taking into account other costs of the production unit, gas processing, storage, transportation, and purchase from Azercontract OJSC.

The decrease in the cost of gas compared to 2020 was due to the decline in wage costs, major repair costs, transportation costs, and protection costs. Thus, salary costs are decreased by 2,851,000 ($1.7 million) manats (6%), major repair costs - 6,860,000 ($4 million) manats (24.3%), transport costs - 4,986,000 ($2.9 million) manats (10%), security costs - 1,629,000 ($958.2 thousand) manats (22.5%).