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 2017 (10.01.2017)

According to the paragraph 32, article 109 of the AR Constitution, for formation of the budget of the State Oil Fund of the Republic of Azerbaijan for the year 2017 and for efficient management of the Fund’s assets,it is hereby decreed:

1.To approve the budget of the State Oil Fund of the Republic of Azerbaijan for the year 2016 including 8 370 589.9thousand manats in revenues and 14 483 856.0thousand 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 2017 are formulated from the following revenues:

№

Income sources

Amount
(in thousand manats)

2.1

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

7 550 705,3

2.2

Acreage fees paid by foreign investors for use of the contract areas for the development of hydrocarbon resources

3 465,0

2.3

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

16 830,0

2.4

Revenues from SOFAZ's asset management

799 094,6

2.5

Oil and gas agreements signature or performance bonuses paid by investors

495,0

Total

8 370 589,9

3.To define that the expenditures of the budget of the State Oil Fund of the Republic of Azerbaijan for the year 2017 are assigned to the following purposes:

№

Directions of expenditures

Amount
(in thousand manats)

3.1

Financing the improvement of social condition of refugees and IDPs

90 000,0

3.2

Upper bound of transfers to 2017 State Budget of the Republic of Azerbaijan

6 100 000,0

3.3

Upper bound of allocation to Central Bank of the Republic of Azerbaijan for preserving macroeconomic stability

7 500 000,0

3.4

Financing the reconstruction of the Samur-Absheron irrigation system

70 000,0

3.5

Financing "Baku-Tbilisi-Kars railway" project

165 825,0

3.6

Financing the "State Programme on the Education of Azerbaijani Youth abroad in the years 2007-2015"

29 304,0

3.7

Financing the share of the Republic of Azerbaijan in Southern Gas Corridor projects

496 155.0

3.8

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

32 572.0

Total

14 483 856,0

4.To approve "The framework (program) of the main directions of utilization of Oil Fund's assets for 2017".

5.To approve estimate of expenditures related to the management of the State Oil Fund of the Republic of Azerbaijan for 2017 (attached).

Ilham Aliyev

President of the Republic of Azerbaijan

January 10, 2017, Baku