Azerbaijani State Oil Fund’s budget-2014 to be formed by new oil prices

Photo: Azerbaijani State Oil Fund’s budget-2014 to be formed by new oil prices
 / Oil&Gas

Azerbaijan, Baku, Sept. 26 / Trend, E. Ismayilov /

While calculating its budget for 2014, the State Oil Fund of Azerbaijan (SOFAZ) will use oil prices of $100 per barrel as a basis, while a few weeks ago, the fund was using the marker of $90, SOFAZ executive director Shahmar Movsumov told journalists on Thursday.

"The outlook for oil prices has changed," he said. "Accordingly, SOFAZ's budget for next year will be drawn up on the basis of $100 per barrel."

SOFAZ's budget for 2013 was also formed on the basis of $100.

The revenue side of SOFAZ's budget has been approved for the current year at $11.482.04 billion manat, expenses - 13.403.099 billion manat. SOFAZ's revenues in January -June 2013 amounted to 6.726.4 billion manat and expenses - 5.791.2 billion manat.

As of January 1, 2013, SOFAZ's assets increased by 14.5 percent and hit 34.129.4 billion compared to early 2012 ($29.8 billion). As of April 1, SOFAZ's funds increased by 0.6 percent and amounted to $34.325.7 billion compared to early 2013.

SOFAZ was established in 1999, and its assets at that time amounted to $271 million.
SOFAZ's assets reached $34.129.4 billion in 2012.

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

The official exchange rate is 0.7845 AZN/USD on Sept. 26.

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