oil fund

STATE OIL FUND OF THE REPUBLIC OF AZERBAIJAN

The Decree of the President of the Republic of Azerbaijan on the Execution of the Budget of the State Oil Fund of the Republic of Azerbaijan for 2004 (28.12.2005)

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, report on 2004 budget execution presented.

Taking into consideration the opinion of the Supervision Board and the results of an audit of State Oil Fund's financial operations conducted by a reputable international audit organizationit is hereby decreed:

To approve of the execution of the budget of the State Oil Fund of the Republic of Azerbaijan for the year 2004, including 1 582 406.6 million manats in revenues and 817 507.9 million manats in expenditures. Fund budget for 2004 was executed with 70.4 % surplus in revenues and 3 % deficit in expenditures.

№

Indicators

Amount (in thousand Manat)

Revenues

1 582 406.6


Including


1

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

1 294 834.7

2

Acreage fees paid by foreign investors to the State Oil Company of the Republic of Azerbaijan or other state authorities for use of the contract areas for the development of hydrocarbon resources

43 261.0

3

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

59 712.3

4

Bonuses paid by investors when signing and fulfilling oil and gas agreements

105 991.1

5

Revenues generated from the transfer of assets from investors to an authorized state body within the framework of oil and gas agreements

2 984.375

6

Revenues from SOFAZ's asset management

623.2

Expenditures

817 507.9


Including


1

Expenditures related to preparation of the project budg­et for execution of Decrees of the President of the Azerbaijan Republic on solution of the socio-domestic and settlement problems of the refugees and internally displaced persons No.562, dated August 22,2001, No.577, dated September 7, 2001, No.700, dated May 13,2002, and Order No.80, dated February 4,2004, as well as designing and construction of individual houses for 100 refugee and internally displaced families in Nakhchivan Autonomous Republic, construction of new settlements for 4179 internally displaced persons in the territory of Bilasuvar, Fuzuli, Agdam and Agjabedi regions

74 952.3

2

Expenditures related to the financing the Share of the State Oil Company of Azerbaijan Republic in the Baku-Tbilisi-Ceyhan Main Export Pipeline Project

89 000.0

3

Transfer to 2004 State Budget of the Republic of Azerbaijan

650 000.0

4

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

3 555.6


Ilham Aliyev,

The President of the Republic of Azerbaijan

Baku, December 28, 2005