OREANDA-NEWS. September 29, 2009. In the process of making the Draft State Budget 2010 the Azerbaijani government adopted a conservative forecast of oil export price.

Governmental sources say that the Cabinet Ministers submitted to the Azerbaijani President the Draft Budget made on the basis of calculation of average export value of oil at the level of \\\\$45 per barrel.

“When forecasting oil price that is basic for economy, the government took into account both foreign market conditions and the necessity to diversify risks. Today the country has in fact one source of receiving oil export earnings - oilfield block Azeri-Chirag-Gunashli being developed by the Azerbaijan International Operating Company (AIOC). In case of technical failure at the ACG block the State Oil Company of Azerbaijan (SOCAR) will hardly be able to cover deficit of export gainings,” a source said.

If necessary, SOCAR can operatively increase production by no more than 200,000 tons (1.498 million barrels).

“In connection with new oil price forecast GDP of 2010 can prove to be less than GDP forecast for 2009, but it will exceed this year’s GDP,” the source emphasized.

The government forecasted oil export price for 2009 in US70 per barrel.