oil fund

STATE OIL FUND OF THE REPUBLIC OF AZERBAIJAN

SOFAZ 2016 budget approved (18.03.2016)

The 2016 budget of the State Oil Fund of the Republic of Azerbaijan (SOFAZ) was amended by the Decree of the President of Azerbaijan dated March 18, 2016.

According to the Decree, for the purpose of specify the revenues and expenditures of SOFAZ 2016 budget the revenues of the Fund from the sale of the Republic of Azerbaijan's share of hydrocarbons has decreased to 4 578 474.6 thousand manats from the previously stated 6 094 053.0 thousand manats, revenue item on acreage fees paid by foreign investors for use of the contract areas for the development of hydrocarbon resources has increased to 3 402.0 thousand manats to the previously stated 2 100.0 thousand manats, revenues from transportation of oil and gas through the territory of the Republic of Azerbaijan has increased to 19 278.0 thousand manats to the previous 12 600.0 thousand manats, revenue item on SOFAZ's asset management has increased to 679 950.2 to the previous 602 790.1 thousand manats, revenues on oil and gas agreements signature or performance bonuses paid by investors has increased to 162.0 thousand manats to the the previous 21.0 thousand manats. The total revenue of SOFAZ budget for the year of 2016, therefore, has decreased from 6 711 564.1 thousand manats to 4 578 474.6 thousand manats.


The total expenditures of SOFAZ 2016 budget has increased from the previously stated 8 181 399.7 thousand manats to 10 668933.7 thousand manats.

The transfers to 2016 state budget has increased from 6 000 000.0 thousand manats to 7 615 000.0 thousand manats. Expenditure items on financing the share of the Republic of Azerbaijan in Southern Gas Corridor projects and administrative expenses of the State Oil Fund of the Republic of Azerbaijan has increased from 1 822 800.0 thousand manats to 2 355 318.0 thousand manats and from 24 420.0 thousand manats to 32 660.0 thousand manats, respectively. The additional expenditure item of 331 776.0 thousand manats, related to financing of the share of Azerbaijan Republic in the construction of the STAR oil refinery project in Turkey has been included to the Fund's 2016 budget.

Estimate of expenditures related to the management of the State Oil Fund of the Republic of Azerbaijan for 2016 has also been changed.