oil fund

STATE OIL FUND OF THE REPUBLIC OF AZERBAIJAN

SOFAZ 2017 budget approved (10.01.2017)

Ilham Aliyev, the President of the Republic of Azerbaijan signed on January 10, 2017 the Decree approving budget of the State Oil Fund of the Republic of Azerbaijan (SOFAZ) for the year 2017 including 8 370 589.9 thousand manats in revenues and 14 483 856.0 thousand manats in expenditures as followings:

The incomes of the budget of the State Oil Fund of the Republic of Azerbaijan for the year 2017 are established out of the following revenues:

Income 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)

7 550 705,3

2.2.

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

3 465,0

2.3.

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

16 830,0

2.4.

Revenues from SOFAZ's asset management

799 094,6

2.5.

Bonuses paid by the investors due to the signature or implementation of oil and gas contracts

495,0


Total

8 370 589,9

Budget expenditures of the State Oil Fund of the Republic of Azerbaijan for the year 2017 are assigned to the following purposes:

Sıra №-si

Directions of expenditures

Amount

(in thousand manats)

3.1.

Financing the improvement of social condition of refugees and IDPs

90 000,0

3.2.

Upper bound of the transfer to 2017 State Budget of the Republic of Azerbaijan

6 100 000,0

3.3.

Upper bound of the transfer to the Central Bank of the Republic of Azerbaijan for ensuring macroeconomic stability

7 500 000,0

3.4.

Financing the reconstruction of the Samur-Absheron irrigation system

70 000,0

3.5.

Financing "Baku-Tbilisi-Kars railway" project

165 825,0

3.6.

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

29 304,0

3.7

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

496 155,0

3.8

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

32 572,0


Total

14 483 856,0

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