Print

Terminology and abbreviations

Terminology

Acreage fees
payable to the State Oil Company of the Republic of Azerbaijan by the foreign investors for use of the contract areas in connection with the development of hydrocarbon resources

Audit
is an evaluation of a person, organization, system, process, enterprise, project or product audits in accounting, but similar concepts also exist in project management, quality management, and for energy conservation. An unbiased examination and evaluation of the financial statements of an organization. It can be done internally (by employees of the organization) or externally (by an outside firm)

Bonus payments
the fees payable by foreign oil companies to State Oil Company of Azerbaijan Republic or other relevant authorities of the Republic of Azerbaijan in connection with signing oil contract and its implementation

Budget deficit
A budget deficit occurs when an entity spends more money than it takes in budget

Dividend
Are payments made by a corporation to its shareholder members. It is the portion of corporate profits paid out to stockholders. When a corporation earns a profit or surplus, that money can be re-invested in the business

VAD (Value Added Tax)
Tax on the estimated market value added to a product or material at each stage of its manufacture or distribution, ultimately passed on to the consumer

Income tax
An income tax is a tax levied on the income of individuals or businesses

Production Sharing Agreement
The Production Sharing Agreement (PSA) is a form of agreement relations in the emerging market economies. It was first put into practice in 1966 in Nigeria, and disseminated later in Egypt, Syria and other countries. The PSA conditions are usually determined by national legislation. According to PSAs, the government gets a part of profit oil as a product along with tax or other payments. Rentals paid to the Oil Fund by foreign companies for state property used on a contractual basis

Loan
A certain amount of money lent for a certain period of time (subject to extension) bearing interest (commision fees), with or without collateral, subject to repayment as per the underlying contract

Royalty
An amount of money paid to the owner of a resource-bearing property by a mining company in exchange for the right to extract and sell the resource. This compensation is usually proportional to the quality and quantity of the resource extracted

Profit
Economic profit, or profit, is the positive difference between a firm's total revenue and its opportunity costs

Profit oil
The Republic of Azerbaijan’s share of proceeds from sale of crude oil under the Production Sharing Agreements

Tariff
Conducts state regulation of prices

Transit fees
The charges for use of the Baku-Supsa export oil pipeline for transporting oil across the territory of the Republic of Azerbaijan

Abbreviations

a

AZN
Azerbaijani Manats


g

GDP
Gross Domestic Product


n

NGO
Non-governmental organization

 

s

SOFAZ
State Oil Fund of the Republic of Azerbaijan

SOCAR
State Oil Company of the Azerbaijan Republic

c

CIS
Commonwealth of Independent States


i

IAG
International Advisory Group

IAO
Independent Accountants’ Opinion

u

UN
United Nations

UN GA
United Nations General Assembly

USD
Dollar of the United States of America

 

e

EITI
Extractive Industries Transparency Initiative


m

MOU
Memorandum of Understanding

MSG
Multi-Stakeholder Group

p

PSA
Production Sharing Agreement

Contact Us

adressHeydar Aliyev Avenue 165, Baku, AZ1029

phone(+99412) 498 77 53
ext. number 1803

mailFFarzaliyev@oilfund.az