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 2011 (28.12.2010)

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 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,it is hereby decreed:

1. To approve the budget of the State Oil Fund of the Republic of Azerbaijan for the year 2011 including 9 132 941,0 thousand manats in revenues and 6 886 155,4 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 2011 are established out of the following revenues:

№

Revenues

Amount
(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)

8 349 564,1

2

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

283 249.2

3

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

148 024.4

4

Oil and gas agreement signature and/or performance bonuses paid by investors

498.5

5

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

10 452.0

6

Revenues from management of SOFAZ's assets

340 252.8

7

Other revenues and incomes

900.0

Total

9 132 941.0

3. To define that the expenditures of the budget of the State Oil Fund of the Republic of Azerbaijan for the year 2011 are assigned to the following purposes:


Ilham Aliyev,

The President of the Republic of Azerbaijan

Baku,December28, 2010