80.0 % of SOFAZ’s total revenue was spent in the half of 2014

80.0 % of SOFAZ’s total revenue was spent in the half of 2014

Total revenue of the State Oil Fund of the Republic of Azerbaijan (SOFAZ) was 6.493 billion manat ($ 8.324 billion US) in the half of 2014. SOFAZ’s total spending was 5.163 billion manat ($ 6.619 billion US) in the reporting period. According to the official figures 79.5 % of the SOFAZ revenues was already spent in the first six months of 2014.

Revenue of 6.374.8 mln. manat was received from the implementation of oil and gas agreements, including 6.355 billion manat from the sale of profit oil and gas, 4.4 mln. manat as transit payments, 13.3 mln. manat as bonus payments and 1.7 mln. manat as acreage fees. The revenues from managing assets of the Fund for January-June 2014 amounted to 118.8 mln. manat. Total income from the managing of the SOFAZ assets was only 1.8 % of fund’s total revenue.

SOFAZ’s direct transfers to the state budget was 4.883 billion manat ($ 6.260 billion US) in the half of 2014. 75.2 % of total revenue was transferred to the stated budget in the reporting period. Meanwhile, the direct budget transfer was 94.6 % of the SOFAZ’s total spending in this period.

The State Oil Fund has also reported that 177.3 mln. manat were directed to financing the improvement of socio-economic conditions of refugees and internally displaced persons. 11.0 mln. manat were used for financing the reconstruction of the Samur-Absheron irrigation system, 19.6 mln. manat were directed to financing Baku-Tbilisi-Kars railway construction and 5.2 mln. manat were directed to financing “The state program on the education of Azerbaijan youth abroad in the years 2007-2015”. Fund directed 40.0 mln. manat to financing of shares belonging to the state in the joint-stock company established for management of the projects within the second phase of the Shah-Deniz gas and condensate field’s development, expansion of the South Caucasus Pipeline, TANAP and TAP. The Fund’s administrative and operational expenses for the reporting period were 26.2 mln. manat.

The Fund’s extra-budgetary revenues related to the revaluation of foreign exchange totalled 6.5 mln. manats. SOFAZ’s extra-budgetary revenues related to price changes of gold amounted to 78.1 mln. manats while extra-budgetary expenses related to price changes of USD, EURO, GBP and other currencies totalled 71.6 million manats. The assets of SOFAZ as of July 1, 2014 has grown by 4.86% compared to the beginning of 2014 (USD 35 877.5 mln.) and stood at USD 37 622.4 mln. Starting from 2012 the Oil Fund has begun purchase of gold and the amount of gold as of July 1, 2014 was 30 tons 175 kg (970 146 ounces)- as the fund has reported.

© CESD, 2014

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