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 2005 (16.10.2006)

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 2005 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 of the execution of the budget of the State Oil Fund of the Republic of Azerbaijan for the year 2005, including 660 064.8thousand manats in revenues and 232 957.3million manats in expenditures. Fund budget for 2005 was executed with 206 % surplus in revenues and 0.7 % deficit in expenditures.

№

Indicators

Amount (in thousand Manat)
Revenues
660 064.8

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)

542 619.0

2.

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

15 643.5

3.

Acreage fees paid by foreign investors to the State Oil Company of the Republic of Azerbaijan or other state authorities for use of the contract areas for the development of hydrocarbon resources

8 151.2

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

918.4

5.

Transfer of the funds derived from the difference between the estimated price for budged computations and selling price of exported oil which flowed to state budget and collected in a special account of treasury

63 294.8

6.

Revenues from SOFAZ's asset management

27 915.3

7.

Other revenues and incomes

1 522.6
Expenditures
232 957.3

1.

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

40 389.6

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

41 000.0

3.

Transfer to 2005 State Budget of the Republic of Azerbaijan

150 000.0

4.

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

1 567.7


Ilham Aliyev,

The President of the Republic of Azerbaijan

Baku, October 16, 2006