The budget for 2020 of the State Oil Fund of the Republic of Azerbaijan (SOFAZ) has been amended by the Decree of the President of Azerbaijan dated August 31, 2020.

According to the Decree, in order to specify the budget revenues and expenditures of SOFAZ for the year 2020, the Fund’s budget revenues were reduced from 12 384 088.2 thousand manats to 7 832 893.4 thousand manats, while the budget expenditures were increased from 11 589 910.3 thousand manats to 12 439 910.3 thousand manats.

Accordingly, the income item on net revenues obtained from the sales of hydrocarbons falling into the share of Azerbaijan was decreased to 6 646 940.7 thousand manats (from 10 563 404.5 thousand manats previously), while revenue item on acreage fees paid by investors per land used for the exploitation of hydrocarbon reserves was increased from 4 692.0 thousand manats to 6 752.4 thousand manats. Revenue item on the transit of oil and gas through the territory of the Republic of Azerbaijan was increased to 21 080.0 thousand manats (from 19 380.0 thousand manats previously), and bonus payments made by investors within the framework of signing and executing oil and gas contracts was increased from 765 340.0 thousand manats to 767 777.4 thousand manats. At the same time, revenue item from the management of SOFAZ’s assets was reduced from 1 031 271.7 thousand manats to 390 342.9 thousand manats.

According to the Decree, the expenditure item on the upper limit of the transfer from SOFAZ to the state budget in 2020 was increased from 11 350 000.0 thousand manats to 12 200 000.0 thousand manats.