oil fund

STATE OIL FUND OF THE REPUBLIC OF AZERBAIJAN

The Decree of the President of the Republic of Azerbaijan on the Amendments to the Budget of the State Oil Fund of the Republic of Azerbaijan for 2011 (14.07.2011)

In accordance with the Decree, taking into account that Azerbaijan will receive extra revenues from implementation of oil and gas agreements under the circumstances of high price of crude oil and in connection with amendments to the 2011 state budget, aiming at timely execution of settlement projects of the refugees and internally displaced persons, reconstruction of the Samur-Absheron irrigation system and "Baku-Tbilisi-Kars railway" project, for accelerating the construction of the administrative building of the State Oil Fund, for the payment of membership fees to international organizations - it is necessary to make amendments to the Fund's 2011 budget. In accordance with the "Regulations on the State Oil Fund of the Republic of Azerbaijan" approved by Decree No. 434, dated December 29, 2000, of the President of the Republic of Azerbaijan, and paragraphs 5.4.1. and 5.4.2. of the "Rules on the preparation and execution of the annual program of revenues and expenditures (budget) of the State Oil Fund of the Republic of Azerbaijan" approved by Decree No. 579, dated September 12, 2001, of the President of the Republic of Azerbaijan, taking into consideration the application of the Executive Director of the State Oil Fund of the Republic of Azerbaijan and the opinion of the Supervision Board, article 109, paragraph 32 of the AR Constitution it is hereby decreed:

1.To make the following amendments to Decree No. 68, dated December 28, 2010, 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 2011":

1.1.To replace the figure "9 132 941.0" with the figure "12796172.0", to change the figure "6 886 155.4" with the figure "9939985.3".

1.2.To edit the table in paragraph 2 of the Decree as follows:

№

Sources of income

Amount of incomes

(in thousand manats)

1.

Proceeds from sales of the Republic of Azerbaijan's share of hydrocarbons (exclusive of hydrocarbons' transportation costs, banking expenses, customs costs, 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)

12 137 044.0

2.

Dividends from regarding realization of the first phase of Shadeniz-I oil and gas project

101 666.0

3.

Dividends from realizing of oil and gas projects (from BTC)

131 992.0

4.

Acreage fees by the foreign investors for use of the contract areas in connection with the development of hydrocarbon resources

1 688.0

5.

Revenues generated from oil and gas transit over the territory of the Republic of Azerbaijan

8 920.0

6.

The oil and gas agreements signature or performance bonuses paid by investors to the State Oil Company of the Republic of Azerbaijan or an authorized state body

17 600.0

7.

Revenues from management of SOFAZ's assets

396 362.0

5.

Other revenues

900.0


Total

12 796 172.0

1.3.To change the figure "110 000.0" with the figure "140 000.0" in the first row, to change the figure “6 480 000.0” with the figure "9 203 200.0" in the second row, to change the figure "110 000.0" with

the figure "200 000.0" in the fourth row, to change the figure "80 215.1" with the figure "260 800.0" in the fifth row, to change the figure "57 494.3" with the figure "87 539.3", and to replace the figure

"6886155.4" with the figure "9939985.3" in the row stipulating the total amount of the expenditures of the table.

2.The Executive Director of the State Oil Fund of the Republic of Azerbaijan shall be assigned to resolve issues arising from this Decree.

Ilham Aliyev,

The President of the Republic of Azerbaijan

Baku, July 14, 2011