oil fund

STATE OIL FUND OF THE REPUBLIC OF AZERBAIJAN

The Decree of the President of the Republic of Azerbaijan on the Execution of the Budget of the State Oil Fund of the Republic of Azerbaijan for 2006 (28.06.2007)

In accordance with the "Regulations on the State Oil Fund of the Republic of Azerbaijan" approved by Decree No. 434, dated December 29, 2000, of the President of the Republic of Azerbaijan, and the "Rules on the preparation and execution of the annual program of revenues and expenditures (budget) of the State Oil Fund of the Republic of Azerbaijan" approved by Decree No. 579, dated September 12, 2001, report on 2006 budget execution presented.

Taking into consideration the opinion of the Supervision Board and the results of an audit of State Oil Fund's financial operations conducted by a reputable international audit organization it is hereby decreed:

To approve the execution of the budget of the State Oil Fund of the Republic of Azerbaijan for the year 2006, including 985 938.7 thousand manats in revenues and 981 375.9 million manats in expenditures. Fund budget for 2006 was executed with 15.4 % surplus in revenues and 4.4 % deficit in expenditures.

№

Indicators

Amount (in thousand Manat)
Revenues
985 938.7

1.

Proceeds from sales of the Republic of Azerbaijan's share of hydrocarbons (deducts the costs of hydrocarbons transportation, banking expenses, customs clearences, 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)

896 258.0

2.

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

12 716.3

3.

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

7 570.9

4.

Bonuses paid by investors to the State Oil Company of the Republic of Azerbaijan or the other authorized state bodies for signing or executing the oil and gas agreements

1 797.7

5.

Payments to SOFAZ as a result of price difference between the contract value and domestic wholesale price of crude oil produced and exported in the Republic of Azerbaijan

10 972.7

6.

Revenues from SOFAZ's asset management

55 953.3

7.

Other revenues and incomes

669.8
Expenditures
981 375.9

1.

Expenditures for financing some projects concerning solution of the social and settlement problems of the refugees and internally displaced persons

110031.5

2.

Expenditures related to the financing the Share of the State Oil Company of Azerbaijan Republic in the Baku-Tbilisi-Ceyhan Main Export Pipeline Project named after Heydar Aliyev

75 409.1

3.

Transfer to 2006 State Budget of the Republic of Azerbaijan

585 000.0

4.

Financingthe construction of water supply pipeline from Oguz-Qabala region to Baku

82 748.7

5.

Financing the project of reconstruction of the Samur-Absheron irrigation system

37 000.0

6.

Formation of the statutory capital of Azerbaijan Investment Company

90 000.0

7.

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

1 186.6



Ilham Aliyev,

The President of the Republic of Azerbaijan

Baku, June 28, 2007