STATE OIL FUND OF THE REPUBLIC OF AZERBAIJAN

SOFAZ 2016 budget approved

Ilham Aliyev, the President of the Republic of Azerbaijan signed on December 29, 2015 the Decree approving budget of the State Oil Fund of the Republic of Azerbaijan (SOFAZ) for the year 2016 including 6 711 564.1 thousand manats in revenues and 8 181 399.7 thousand manats in expenditures as followings:

The incomes of the budget of the State Oil Fund of the Republic of Azerbaijan for the year 2016 are established out of the following revenues:

Income sources	Amount (in thousand manats)
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
Acreage fees paid by foreign investors for use of the contract areas for the development of hydrocarbon resources	2 100.0
Revenues from transportation of oil and gas through the territory of the Republic of Azerbaijan	12 600.0
Revenues from SOFAZ's asset management	602 790.1
Bonuses paid by the investors due to the signature or implementation of oil and gas contracts	21.0
Total	6 711 564.1

Budget expenditures 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)
Financing the improvement of social condition of refugees and IDPs	90 000.0
Transfer to 2016 State Budget of the Republic of Azerbaijan	6 000 000.0
Financing the reconstruction of the Samur-Absheron irrigation system	70 000.0
Financing "Baku-Tbilisi-Kars railway" project	137621.7
Financing the "State Programme on the Education of Azerbaijani Youth abroad in the years 2007-2015"	36 558.0
Financing the share of the Republic of Azerbaijan in Southern Gas Corridor projects	1 822 800.0
Administrative expenses of the State Oil Fund of the Republic of Azerbaijan	24 420.0
Total	8 181 399.7

Approval of the Budget followed the procedures laid out in the Funds Statutory Regulations and Budgetary Regulations.