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 2008 (11.07.2008)

Taking into consideration that the state of Azerbaijan will obtain additional incomes from the production sharing agreements in connection with the hydrocarbons exploitation due to the high price rise in the current year, as well as, taking into consideration the necessity of making amendments to the budget of the State Oil Fund in connection with amendments to the state budget for the year 2008, it is hereby decreed:

1. 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, to make the following amendments to Decree No. 687, dated December 26, 2007, 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 2008":

1.1.To change the words "the incomes amounting to 3 609 361,0 thousand manats" with the words "the incomes amounting to 10144743,2 thousand manats", and the words "the expenditures amounting to 1 680 853,6 thousand manats" with the words "the expenditures amounting to 4380853,6 thousand manats", in paragraph 1 of the Decree,

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)

9 819 516,0

2.

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

104 806,0

3.

Payment on export price of crude oil transferring to the State Oil Fund

70 623,1

4.

Revenues from management of SOFAZ's assets

148 898,1

5.

Other revenues

900,0


Total

10 144 743,2

1.3.To change the figure "1 100 000,0" with the figure "3 800 000,0" in the second row and to replace the figure "1 680 853,6" with the figure "4 380 853,6" in the row stipulating the total amount of the expenditures of the table in paragraph 3 of the Decree.

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

3.This Decree shall come into effect from the day it is signed.

Ilham Aliyev,

The President of the Republic of Azerbaijan

Baku, July 11, 2008