Investments in oil, gas sector drop in 2021

By Azernews

By Ayya Lmahamad

The volume of investments in Azerbaijan’s oil and gas sector decreased by 5.6 percent in 2021, the State Statistics Committee has reported.

Meanwhile, investments in the non-oil and gas sector also showed a 9.6-percent decline last year.

Some AZN 16.1 billion ($9.4bn) were directed to fixed capital last year, which is by 8.2 percent less than in 2020.

Of this, AZN 10.5 billion ($6.1bn) or 65.3 percent was spent on production areas, AZN 4.5 billion ($2.6bn) or 28.3 percent on service areas and AZN 1 billion ($605.5m) or 6.4 percent on the construction of residential buildings.

Furthermore, AZN 11.7 billion ($bn) or 73.1 percent of fixed assets were internal funds.

Some AZN 11 billion ($6.9bn) or 68.3 percent of the funds directed to the fixed capital was spent for construction and installation works.

Moreover, in the total value of fixed capital investments, funds of enterprises and organizations accounted for 54.7 percent, budget funds for 25.7 percent, bank credits for 6.1 percent, personal funds for 6 percent and other funds for 7.5 percent.

It should be noted that investments in the country’s oil and gas sector increased by 0.3 percent in 2020 while investments in the non-oil and gas sector in the country decreased by 12.3 percent.