Shahmar Movsumov, the Executive Director of the State Oil Fund of the Republic of Azerbaijan held on January 25, 2008 a press conference on SOFAZ activities in the year 2007. Updating press on the latest developments at SOFAZ, he made a presentation and answered media questions.

SOFAZ Executive Director made public the Fund's revenue and expenditure statement for 2007:

Budget revenues of the State Oil Fund of the Republic of Azerbaijan (SOFAZ) for the period of January-December, 2007 reached 1 872,3 million manats (AZN), while budget expenditures constituted AZN 1 061,2 mln. 2007 budget revenues and expenditures of the Fund were executed accordingly 120,3% and 95,1%.

Revenue of AZN 1 800,0 mln. was received from implementation of oil and gas agreements, including AZN 1675,0 mln. from the sale of profit oil, AZN 5,6 mln. as acreage payments, AZN 58,1 mln. as bonus payments, and AZN 1,3 mln. from sale of assets received from foreign companies. SOFAZ received AZN 60,0 mln. 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 72,3 mln.

The Fund's extra-budgetary revenue due to asset revaluation stood at AZN 13,9 mln.

As per 2007 budget of the Fund, the expenditures in the amount of AZN 154,1 mln. were directed to financing of improvement of social condition of refugees and internally displaced persons, AZN 76,9 mln. and AZN 132,9 mln. were accordingly used for financing the reconstruction of the Samur-Absheron irrigation system and financing construction of the Oghuz-Gabala-Baku water supply system. AZN 20,7 mln. were directed to financing Baku-Tbilisi-Kars railway, AZN 585,0 mln. were transferred to the state budget and AZN 87,6 mln. were directed to repayment of the State Oil Company's share in the projects on joint exploration and development of Azeri, Chirag and Guneshli oilfields. The Fund's administrative and operational expenses in 2007 were AZN 4 mln.

Net return on the Fund's assets in 2007 constituted 5.04 % in the Fund's reporting currency (AZN) and 8.28% in the Fund's base currency (USD).

The assets of SOFAZ as at January 1, 2008 has grown by USD 1021 mln. and stood at AZN 2092,4 mln. (USD 2475,4 mln.)