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 2016 (29.12.2015)

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 2016 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 6 711 564.1thousand manats in revenues and 8 181 399.7thousand 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 2016 are formulated from the following revenues:


NIncome 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)

6 094 053.0

2.2.

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

2 100.0

2.3.

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

12 600.0

2.4.

Revenues from SOFAZ's asset management

602 790.1

2.5.

Oil and gas agreements signature or performance bonuses paid by

investors

21.0

Total

6 711 564.1


3. To define that the expenditures of the budget of the State Oil Fund of the Republic of Azerbaijan for the year 2016 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.

Transfer to 2016 State Budget of the Republic of Azerbaijan

6 000 000.0

3.3.

Financing the reconstruction of the Samur-Absheron irrigation system

70 000.0

3.4.

Financing "Baku-Tbilisi-Kars railway" project

137 621.7

3.5.

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

36 558.0

3.6.

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

1 822 800.0

3.7.

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

24 420.0


Total

8 181 399.7


4.To approve "The framework (program) of the main directions of utilization of Oil Fund's assets for 2016"(attached).

5. To approve estimate of expenditures related to the management of the State Oil Fund of the Republic of Azerbaijan for 2016 (attached).

Ilham Aliyev,

The President of the Republic of Azerbaijan

Baku,December 29, 2015

No. 719