Today.Az » Business » SOFAZ budget amended
19 July 2018 [15:32] - Today.Az

By Azernews

By Sara Israfilbayova

The 2018 budget of the State Oil Fund of the Republic of Azerbaijan (SOFAZ) was amended by the Decree of Azerbaijani President Ilham Aliyev dated July 17, 2018.

In accordance with the Decree, for the purpose of specify the revenues and expenditures of  SOFAZ’s 2018 budget the revenues of the Fund from the sale of Azerbaijan’s share of hydrocarbons has increased to 13.307 billion manats ($7.83 billion) from the previously stated 9.723 billion manats ($5.72 billion), revenue item on acreage fees paid by foreign investors for use of the contract areas for the development of hydrocarbon resources has increased to 4.08 million manats ($2.4 million) from the previously stated 3.612 million manats ($2.12 million), revenues from transportation of oil and gas through the territory of Azerbaijan has increased to 17.37 million manats ($10.22 million) from the previous 16.34 million manats ($9.61 million), revenue item on SOFAZ’s asset management has increased to 1.216 billion manats ($715.3 million) from the previous 1.042 billion manats ($612.94 million), revenues on oil and gas agreements signature or performance bonuses paid by investors has increased  to 765,228 manats ($450,130) from the previous 774,172 million manats ($455,400). The total revenue of SOFAZ’s 2018 budget, therefore, has increased from 11.559 billion manats ($6.8 billion) to 15.310 billion manats ($9.005 billion).

In accordance with the decree the highest limit of the transfer payment to the 2018 state budget of the Republic of Azerbaijan has increased from 9.216 billion manats ($5.42 billion) to 10.966 billion manats ($6.45 billion).

The total expenditures of SOFAZ’s 2018 budget has increased from the previously stated 9.730 billion manats ($57.23 billion) to 11.480 billion manats ($6.75 billion).

SOFAZ was established under the Presidential Decree, dated December 29, 1999, “On Establishment of the State Oil Fund of the Republic of Azerbaijan.” 

The main purpose of the establishment of the Fund was to preserve and multiply the income derived from oil, create an excellent economic base, taking into account social needs, the requirements of economic progress and development of the country. Besides, the challenge ahead is to protect the country's economy from possible negative influences caused by the growth of foreign exchange earnings and avoidance of damage to financial discipline.

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