Azerbaijani State Oil Fund’s revenues increase in Jan.-June 2019

The budget revenues of the State Oil Fund of Azerbaijan (SOFAZ) reached 10.7 billion manats in January-June 2019, which is by 16.6 percent more compared to the same period of 2018, Trend reports referring to SOFAZ’s website.

During the reporting period, SOFAZ’s budget expenditures made up 4.5 billion manats.

The revenues worth 8.5 billion manats were received as a result of implementation of oil and gas agreements, including 7.8 billion manats from the sale of profit oil and gas, 8.9 million manats - transit payments, 766.4 million manats - bonus payments, 1.1 million manats - acreage fee.

In the structure of SOFAZ’s expenditure, 4.4 billion manats were transferred to the state budget.

The expenditure in the amount of 74.9 million manats were directed to financing the improvement of social-economic condition of refugees and internally displaced people.

SOFAZ’s administrative and operational expenses for the reporting period reached 11.5 million manats, while income – 2.1 billion manats.

As of June 30, 2019 the assets of SOFAZ have increased by 10.25 percent compared to the beginning of the year ($38.5 billion) and stood at $42.5 billion.

SOFAZ was established in 1999 with assets of $271 million.

Based on SOFAZ's regulations, its funds may be used for the construction and reconstruction of strategically important infrastructure facilities, as well as solving important national problems.

The main goals of the State Oil Fund include accumulation of resources and placement of assets abroad in order to minimize the negative effect to the economy, prevention of "Dutch disease" to some extent, promotion of resource accumulation for future generations and support of current social and economic processes in Azerbaijan.

(1.7 AZN = 1 USD on Aug. 2)