Shahmar Movsumov, the Executive Director of the State Oil Fund of the Republic of Azerbaijan held on January 30, 2007 a press conference on SOFAZ activities in the year 2006. Updating press on the latest developments by SOFAZ, he made a presentation and answered questions by the journalists.

SOFAZ Executive Director made public the Fund’s revenue and expenditure statement for 2006:

Budget revenues of the State Oil Fund of the Republic of Azerbaijan (SOFAZ) for the period of January-December, 2006 reached 985,9 million manats (AZN), while budget expenditures constituted AZN 981,3 mln.

Revenue of AZN 930, 0 mln. was received from implementation of oil and gas agreements, including AZN 896,3 mln. from the sale of profit oil, AZN 12,7 mln. as transit fees, AZN 1,8 mln. as bonus payments, AZN 7,6 mln. as acreage payments and AZN 0,6 mln. from sale of assets received from foreign companies under PSAs and AZN 11,0 mln. was received from State Oil Company of the Republic of Azerbaijan as the price difference between the contract value and domestic wholesale price of exported oil. The revenues from managing assets of the Fund for the reporting period amounted to AZN 55,9 mln.

As per 2006 budget of the Fund, the expenditures in the amount of AZN 110, 0 mln. were directed to financing of building of housing and improvement of social condition of refugees and internally displaced persons. AZN 75, 4 mln. was utilized for financing of AzBTC Co.’s share in Heydar Aliyev Baku-Tbilisi-Ceyhan pipeline project and AZN 585,0 mln. was transferred to the State Budget. AZN 82,7 mln. was used for financing construction of the Oghuz-Gabala-Baku water supply system and AZN 37, 0 mln. was utilized for financing the reconstruction of the Samur-Absheron irrigation system. AZN 90,0 mln. was directed to formation of the statutory capital of the State Investment Company. The Fund’s administrative and operation expenses in 2006 were AZN 1,2 mln.

The Fund's extra-budgetary expenditures and payments in 2006 were AZN 17, 6 mln., including asset revaluation expenses of AZN 17, 5 mln. and AZN 0,1 mln. as other expenditures.

Net return on the Fund’s assets in 2006 constituted 2.9% in the Fund’s reporting currency (AZM) and 8.5% in the Fund’s base currency (USD).

The assets of SOFAZ as at January 2007 stood at AZN 1 267, 4 mln.(USD 1 454,5 mln.)