42.6 percent or 16435.0 million manats of the projected state budget revenues for 2026 fall to the share of the oil and gas sector, and 57.4 percent or 22174.0 million manats to the share of the non-oil and gas sector.
Modern.az reports that this was noted in the draft budget package of the Republic of Azerbaijan for 2026.
The budget draft states that, compared to the projected indicator of the 2025 state budget, next year the revenues of the oil and gas sector (including transfers from the State Oil Fund of the Republic of Azerbaijan) will be 1876.0 million manats or 10.2 percent less, while the revenues of the non-oil and gas sector will be 2129.0 million manats or 10.6 percent more.
78.1 percent or 12835.0 million manats of the state budget revenues from the oil and gas sector consist of transfers from the State Oil Fund of the Republic of Azerbaijan, and 21.9 percent or 3600.0 million manats consist of revenues from the oil and gas sector through tax authorities. Of the revenues from the oil and gas sector through tax authorities, 1700.0 million manats will fall to the share of budget payments for the State Oil Company of the Republic of Azerbaijan (SOCAR), 300.0 million manats to profit tax within the Azeri-Chirag-Gunashli (ACG) project, and 1600.0 million manats to profit tax for the Shah Deniz gas-condensate project. Tax payments totaling 1700.0 million manats envisaged for the state budget by SOCAR and its subsidiaries are 180.0 million manats or 9.6 percent less compared to the corresponding projected indicator for 2025, and 74.5 million manats or 4.2 percent less compared to the execution in 2024.
Calculations for minimum tax obligations have been made, taking into account the projected indicators of the country's Fuel and Energy Balance for 2026 and the subsequent three years. The reason for the decrease compared to the 2025 forecast is the reduction in tax obligations due to a decrease in crude oil production by 471.8 thousand tons or 7.7 percent to 5616.8 thousand tons, a decrease in natural gas production by 0.8 billion m3 or 15.4 percent to 4.6 billion m3, an increase in crude oil imports, and simultaneously, according to the Fuel and Energy Balance, a decrease in crude oil refining by SOCAR by 800.0 thousand tons or 11.9 percent to 5900.0 thousand tons.
Profit tax for the Azeri-Chirag-Gunashli (ACG) project within the framework of Production Sharing Agreements is projected at 300.0 million manats, which is 150.0 million manats or 33.3 percent less than this year's forecast, and 365.0 million manats or 2.2 times less compared to the execution in 2024.
The reason for the decrease compared to the 2025 budget revenue forecast is the reduction in oil production from ACG by 3.9 million barrels (10.7 thousand barrels daily), simultaneously, the average selling price of a barrel of “Azerilight” brand crude oil being set at 65 US dollars, which is 5.0 US dollars less, as well as an increase in operating and capital expenditures.
Profit tax for the Shah Deniz project is projected at 1600.0 million manats, which is 100.0 million manats or 6.7 percent more compared to the 2025 forecast, and 741.0 million manats or 31.7 percent less compared to the execution in 2024. The increase compared to the 2025 forecast is due to the average selling price of natural gas being taken 8.3 percent or 20.0 US dollars higher than the indicator envisaged for the current year. At the same time, the decrease compared to the execution in 2024 is explained by the average selling price of natural gas being projected 11.7 percent or 34.8 US dollars lower, the price of a barrel of “Azerilight” brand crude oil being projected 17.7 US dollars or 21.4 percent lower, as well as a decrease in natural gas production by 686.8 million m3 or 2.5 percent, and condensate production by 4.4 million barrels or 12.6 percent.
