oil fund

STATE OIL FUND OF THE REPUBLIC OF AZERBAIJAN

The Decree of the President of the Republic of Azerbaijan on the Approval of the Budget of the State Oil Fund of the Republic of Azerbaijan for 2013 (30.12.2012)

According to the paragraph 32, article 109 of the AR Constitution, for formation of the budget of the State Oil Fund of the Republic of Azerbaijan for the year 2013 and for efficient management of the Fund’s assets, it is hereby decreed:

1. To approve the budget of the State Oil Fund of the Republic of Azerbaijan for the year 2013 including 11 482 040.4 thousand manats in revenues and 13 403 099.4 thousand manats in expenditures.

2. To define that the incomes of the budget of the State Oil Fund of the Republic of Azerbaijan for the year 2013 are formulated from the following revenues:

Income sources

Amount
(in thousand manats)

2.1.

Proceeds from sales of the Republic of Azerbaijan's share of hydrocarbons (deducts the costs of hydrocarbons transportation, banking expenses, customs clearances, independent surveyor, marketing and insurance costs, and also exclusive of the revenues from the SOCAR's share in the projects of which it is an investor, shareholder or partner)

11 171 072.0

2.2.

Acreage fees paid by foreign investors for use of the contract areas for the development of hydrocarbon resources

1 833.1

2.3.

Revenues from transportation of oil and gas through the territory of the Republic of Azerbaijan

9 223.8

2.4.

Revenues from SOFAZ's asset management

287 448.1

2.5.

Bonuses paid by investors when signing and fulfilling oil and gas agreements

11 963.4

2.6.

Other incomes according to the legislation

500.0


Total

11 482 040.4


3. To define that the expenditures of the budget of the State Oil Fund of the Republic of Azerbaijan for the year 2013 are assigned to the following purposes:

N

Directions of expenditures

Amount
(in thousand manats)

3.1

Financing the improvement of social condition of refugees and IDPs

300 000.0

3.2

Transfer to 2013 State Budget of the Republic of Azerbaijan

11 350 000.0

3.3

Financing the reconstruction of the Samur-Absheron irrigation system

107 438.0

3.4

Financing new "Baku-Tbilisi-Kars railway" construction project

138 274.5

3.5

Financing the "State Programme on the Education of Azerbaijani Youth abroad in the years 2007-2015"

34 056.0

3.6

Financing of the construction of high speed fiber optic network providing an access to all settlements of Azerbaijan Republic.

103 555.9

3.7.

Financing of the share of Azerbaijan Republic in the construction project of the Oil-Gas and Petrochemical Consortium (OGPC)

211 950.0

3.8.

Financing of the share of Azerbaijan Republic in the construction of the STAR oil refinery project in Turkey

596600.0

3.9.

Financing of the share of Azerbaijan Republic in the construction of the TANAP project

86350.0

3.10.

Financing of the share of Azerbaijan Republic in the construction of new driling rig in the Caspian Sea

388 575.0

3.11.

Administrative expenses of the State Oil Fund of the Republic of Azerbaijan

86300.0


Total

13 403 099.4

4.To approve "The framework (program) of the main directions of utilization of Oil Fund's assets for 2013"

5. To approve estimate of expenditures related to the management of the State Oil Fund of the Republic of Azerbaijan for 2013

Ilham Aliyev,

The President of the Republic of Azerbaijan

Baku,December 30, 2012