Revenues of the State Oil Fund of Azerbaijan (SOFAZ) for the period of January-December, 2003 reached 1,819.8 billion manats (AZM), while expenditures constituted AZM1,180.1 billion. (see Information attached)

Revenue of AZM1,636.7 billion was received from implementation of oil and gas agreements including AZM869.0 billion from the sale of profit oil, AZM94.6 billion as acreage payments, AZM63.6 billion as oil transit fees, AZM0.6 billion as rental fees for the use of state property and AZM608.9 billion as bonus payments of which 320.7 billion bonus was transferred to the Oil Fund from the National Bank of Azerbaijan to finance the purchase of shares in AzBTC Co. by the Ministry for Economic Development within the framework of financing participation in Baku-Tbilisi-Ceyhan Main Export Pipeline Project, AZM49.1 billion bonus received from US Exxon-Mobil corporation ( in connection with the commencement of drilling on the Zafar Meshel contract area) and AZM239.1 billion received from Russiaâ€^TMs Lukoil company for the expansion of the D-222 offshore block extraction area.

Revenues from managing assets of the Fund for the reporting year period amounted to AZM183.2 billion. Annual return on the Fundâ€^TMs assets in 2003 constituted 5.08% in the Fundâ€^TMs reporting currency (AZM) and 4.45% in the Fundâ€^TMs base currency (USD).

Expenditures of the Fund in the amount of AZM99.8 billion were directed to finance, as per 2003 budget of the Fund and Presidential Decrees â„- 562, 577, 700, building of housing and improvement of socio-economic condition of refugees and internally displaced persons who were forced to flee their native lands as a result of Armenia's policy of ethnic cleansing and aggression against Azerbaijan. AZM 576.0 billion was utilized for the financing of AzBTC Co.â€^TMs share in Baku-Tbilisi-Ceyhan pipeline project and AZM500.0 billion was transferred to the State Budget.

The Fund's administrative and operating expenses in 2003 were AZM4.3 billion.

In 2003 the Fund paid out AZM12.0 billion as profit tax.

The assets of SOFAZ as at January 1, 2004 stood at AZM4,015 billion (approx USD 815 million) as compared against assets as at January 1, 2003 of 3.387 billion (approx USD 692 million).