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 2007 (28.12.2006)

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 2007 including 1 555 739,6 thousand manats in revenues and 977 066,9 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 2007 are established out of the following revenues:


No.

Sources of income

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)


1 429 724,2

2.

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

5 561,6

3.

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

14 620,0

4.

Oil and gas agreement signature and/or performance bonuses paid by investors to the State Oil Company or an authorized state body

17 200, 0

5.

Other revenues

200,0

6.

Revenues from management of SOFAZ's assets

55 067,4

7.

Revenues from the price difference between the contract value and domestic wholesale price of exported oil

33 366, 4


Total

1 555 739,6


3. To define that the expenditures of the budget of the State Oil Fund of the Republic of Azerbaijan for the year 2007 are assigned to the following purposes:


No.

Directions of expenditures

Amount

(in thousand manats)

1.

The expenditures for financing some projects concerning solution of the social and settlement problems of the refugees and internally displaced persons

124 161,0

2.

Transfer to 2008 State Budget of the Republic of Azerbaijan

585 000,0

3.

Financing of the project of construction of the water pipeline from Oghuz-Gabala region to Baku

183 620,0

4.

Financing the reconstruction of the Samur-Absheron irrigation system

76 900,0

5.

Oil Fund's operating expenditures

7 385,9


Total

977 066,9


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

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


Ilham Aliyev,

The President of the Republic of Azerbaijan

Baku, December 28, 2006