Assets of the State Oil Fund of Azerbaijan (SOFAZ) increased by 4.6% and amounted to $35.1 billion as of July 1, as compared to $33.57 billion in early 2016, SOFAZ said in a report.
SOFAZ’s revenues totaled almost four billion Azerbaijani manats during the H1 2016, and expenditures were almost at 2.256 billion manats.
During the period, revenues from implementation of oil and gas contracts amounted to 3.689 billion manats, including revenues from the sale of profit oil and gas – 3.68 billion manats, from transit operations – 8.8 million manats and bonus payments – 0.1 million manats.
SOFAZ’s revenues in the reporting period from the management of its own funds totaled 301.5 million manats, says the report.
Transfers by SOFAZ to the state budget amounted to 1.76 billion manats.
The expenditures on measures to improve the social and domestic situation of refugees and IDPs were 55.2 million manats, the expenditures for financing the project for reconstruction of the Samur-Absheron irrigation system totaled 19.6 million manats.
Meanwhile, 9.2 million manats were spent on the education of Azerbaijani students abroad as part of the 2007-2015 state program. Moreover, 35.3 million manats were directed to finance the project for construction of the Baku-Tbilisi-Kars railway.
SOFAZ’s expenditures to finance the state’s share in the Southern Gas Corridor, created as part of the TANAP and TAP projects for Azerbaijani gas supplies to Europe, were 241.9 million manats in H1 2016.
The expenditures to finance Azerbaijan’s share in the Star Refinery’s construction project totaled 127 million manats.
The costs of managing the SOFAZ amounted to 8.5 million manats in H1 2016.
SOFAZ’s non-budget revenues from rate difference in H1 2016 totaled 65.4 million manats.
SOFAZ was established in 1999 with assets of $271 million.
Based on SOFAZ’s regulations, its funds may be used for construction and reconstruction of strategically important infrastructure facilities, as well as solving important national problems.
SOFAZ’s main goals include: accumulation of resources and placement of the SOFAZ assets abroad to minimize the negative effect on the economy, the prevention of “Dutch disease” to some extent, securing the accumulation of funds for future generations and the support of current social and economic processes in Azerbaijan. (Trend/Business World Magazine)