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 2018 (28.12.2017)

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 2018 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 2018 including 11 559 956.2 thousand manats in revenues and 9 730 221.8 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 2018 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)

9 723 786,1

2.2

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

3 612,0

2.3

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

16 340,0

2.4

Revenues from SOFAZ's asset management

1 042 046,1

2.5

Oil and gas agreements signature or performance bonuses paid by investors

774 172,0

Total

11 559 956,2

3.To define that the expenditures of the budget of the State Oil Fund of the Republic of Azerbaijan for the year 2018 are assigned to the following purposes:

Directions of expenditures

Amount
(in thousand manats)

3.1

Financing the improvement of social condition of refugees and IDPs

200 000,0

3.2

Upper bound of transfers to 2017 State Budget of the Republic of Azerbaijan

9 216 000,0

3.3

Financing the reconstruction of the Samur-Absheron irrigation system

90 000,0

3.4

Financing "Baku-Tbilisi-Kars railway" project

176 128,0

3.5

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

16 218,0

3.6

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

31 875,8

Total

9 730 221,8


4. To approve "The framework (program) of the main directions of utilization of Oil Fund's assets for 2018"(attached).

5. To approve estimate of expenditures related to the management of the State Oil Fund of the Republic of Azerbaijan for 2018 (attached).

6.The Cabinet of Ministers of the Republic of Azerbaijan should affirm the audit of the maintenance costs and effectiveness of asset management of the State Oil Fund of the Republic of Azerbaijan as of the end of the year 2017 by involving an international audit company until July 1, 2018 and report the results of the audit to the President of the Republic of Azerbaijan.

Ilham Aliyev,

The President of the Republic of Azerbaijan

Baku,December 28, 2017