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 2020 (29.12.2019)

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 2020 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 2020 including 12 384 088.2 thousand manats in revenues and 11 589 910.3 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 2020 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)

10 563 404.5

2.2.

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

4 692.0

2.3.

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

19 380.0

2.4.

Revenues from SOFAZ's asset management

1 031 271.7


2.5.

Oil and gas agreements signature or performance bonuses paid by investors

765 340.0


Total

12 384 088.2


3. To define that the expenditures of the budget of the State Oil Fund of the Republic of Azerbaijan for the year 2020 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

200 000.0


3.2.

Upper bound of transfers to 2020 State Budget of the Republic of Azerbaijan

11 350 000.0


3.3.Financing of "The State Program for increasing international competitiveness of the higher education system of the Republic of Azerbaijan in 2019-2023"
10 000.0

3.4.

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

29 910.3



Total

11 589 910.3


4. To approve "The framework (program) of the main directions of utilization of Oil Fund's assets for 2020 (attached).

5. To approve estimate of expenditures related to the management of the State Oil Fund of the Republic of Azerbaijan for 2020(attached).

Ilham Aliyev,

The President of the Republic of Azerbaijan

Baku, December 29, 2019