SOFAZ talks budget execution expectations for 2016

Baku, Azerbaijan, Nov. 2

By Maksim Tsurkov – Trend:

Despite the fact that the budget of the State Oil Fund of Azerbaijan (SOFAZ) was approved with a deficit of six billion manats in early 2016, it is forecast that the actual revenues and expenses of the fund will be equal by late 2016, SOFAZ told Trend.

The budget of SOFAZ for 2016 was drawn up on the basis of the oil price of $25 per barrel set in Azerbaijan’s state budget. Thus, taking into account this price, the president of Azerbaijan by his decree approved the revenue part of the fund’s budget in the amount of 4.58 billion manats, and expenses of the fund were approved at 10.67 billion manats. The budget deficit was projected at 6.09 billion manats.

“During the year, oil prices were above the budgeted level, and in the end, revenues of SOFAZ increased in comparison with the approved rates,” the fund noted. “As of October 28, the average weighted price of the oil sold amounted to $40.5. As a result, the general revenues of the fund, including from the sale of oil and gas amounted to 7.2 billion manats, which exceeds the annual rate by 57.5 percent.”

By late 2016, given the current oil price of around $50 per barrel, SOFAZ expects additional revenues of $1.2 billion, or 1.9 billion manats. As a result, general revenues of the fund are projected at 9.1 billion manats at the end of the year, which will exceed the forecast figure (4.6 billion manats) by 98 percent.

“It should be noted that the Azerbaijani government's decision to release the bonds of the Southern Gas Corridor CJSC in the amount of around $1 billion helped to raise additional funds, which made it possible to reduce the expenses of SOFAZ,” the fund added.

“Given the savings in connection with the issuance of bonds, general expenses of SOFAZ in 2016 are forecast at 9.1 billion manats, which will amount to 85 percent of the budget figure (10.7 billion manats),” the fund noted.

“At the same time, it’s necessary to remember that the investment portfolio of SOFAZ is formed out of the assets composed of US dollars, as well as euros, pounds and other currencies,” the fund said.

“The forecast size of the SOFAZ assets denominated in US dollars as of late 2016 compared to early 2016 may change depending on the exchange rate difference of the above mentioned currencies against the US dollar during that period,” SOFAZ added.

The assets of SOFAZ have increased by 6.7 percent as of Oct. 1, 2016 and stood at $35.82 billion as compared to $33.57 billion in early 2016.

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.

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

---

Follow the author on Twitter: @MaksimTsurkov

Georgia sees decrease in number of Azerbaijani visitors
Georgia sees decrease in number of Azerbaijani visitors
CENN, EU, USAID take measures for revival of Georgian hospitality industry
CENN, EU, USAID take measures for revival of Georgian hospitality industry
Luxury hotels to be built in Karabakh - Azerbaijan Hotel Association
Luxury hotels to be built in Karabakh - Azerbaijan Hotel Association
Loading Bars
Latest
Iran, Afghanistan discuss bilateral ties, latest developments
Georgia faces third coronavirus wave - NCDC
Turkey welcomes Ramadan with tight measures against COVID-19
Operator of Kazakh Kashagan to hold open round-table on Marine Access Channels Project
Nvidia to directly challenge Intel with Arm-based 'Grace' server chip
New oil drilling platform activated in Turkmen sector of Caspian Sea
War Trophy Park to open for visitors in Azerbaijan’s Baku soon
Azerbaijani, Maldives FMs hold exchange views issues mutual interest
Uzbekistan discloses progress on construction of new plant of Navoiazot company
Azerbaijani FM receives delegation of Italian Senate (PHOTO)
Azerbaijan’s Baku Metro introduces solution for automatic supply of voltage to trains (PHOTO)
Several audit companies in Azerbaijan included in network of int’l organizations
Current interest rate in Azerbaijan to improve position of local capital market - Unicapital
International IT Holding of Belarus implementing big transport project in Azerbaijan
Russia's Red Wings may launch flights from Yekaterinburg, Chelyabinsk to Uzbekistan
Iran's Energy Exchange announces products to be on sale on April 13
Bahar Azadi gold coin price rebounds in Iran
Uzbekistan increases export volume of clothing to Kazakhstan
Iran's Natanz nuclear facility continues to operate – AEOI
UAE reports 1,928 new COVID-19 cases, two deaths
Russia allows import of tomatoes to several Azerbaijani enterprises
Israel's fiscal deficit narrows as economy begins recovery
IMF makes prediction regarding Georgian external debt
UK, EU talks on Northern Ireland are constructive, differences remain
Georgian E-Space actively cooperating with car dealers to bring new electric vehicles
Russia, Uzbekistan approve text of space co-op agreement
Uzbekistan joins CIS industrial agreement
Uzbekistan, Kuwait launching direct flights
Georgia's external debt up due to COVID-19 shock - IMF
Azerbaijan's CBA signs contract to acquire licenses for cybersecurity
Uzbekistan’s centers of public services improve work on basis of Azerbaijan's ASAN
Iran's LPG exports decreases
USDA unveils forecast for Azerbaijan's barley production
Russian Technonikol looks to build thermal insulation plants in Kazakh Almaty region
Indian-American, 5, Reads 36 Books Nonstop In 105 Minutes, Sets Record
Weekly review of Georgian's capital markets
Georgian Inert Materials Complex company investing in extraction of gravel materials
Nar’s renovates its service centers in Baku and regions (PHOTO)
India becomes largest buyer of US crude in first quarter of 2021
Turkmenistan's Mary region opens tender for construction of schools
Iran implements its plan on domestic production in full - deputy minister
Azerbaijan publishes latest data on COVID-vaccinated citizens
Investments in Kazakhstan's agriculture surge
Several international companies express interest in Georgian FDI Grant
Minister discloses amount of export of Azerbaijan’s non-oil products
Iran tightens restrictions for travelers on borders with Turkey, Iraq
Azerbaijan confirms 1,151 more COVID-19 cases, 1,052 recoveries
Georgia to place new Eurobonds
Iran looks to set up advanced centrifuges at Natanz nuclear plant
Kazakhstan increases exports to UK
Iran Oil Ministry to fund startups
Iran unveils generation capacity of thermal power plants
Azerbaijan temporarily bans import of poultry meat from several countries
Georgia shares data on revenues from tobacco excise duty
S.Korean PM, Iranian Supreme Leader's Advisor discuss frozen Iranian funds
Kazakhstan, Belarus trade surges
Potato, onion planting completed in Dashoguz region of Turkmenistan
Iran's TEDPIX sees decline
Swiss government urges voters to back COVID-19 law that foes want to ditch
Kazakhstan exceeds plan on petroleum products output
High-voltage substation with digital control system to be built in Uzbek Jizzakh region
Azerbaijani president signs order to set up new enterprises in Balakhani Industrial Park
Revenues of Azerbaijan's Nakhchivan from communication services increase
Turkish Aksa Enerji building thermal power plants in Uzbek Tashkent region
Maersk Explorer completes drilling activities for Shah Deniz
Unicorns of 2021: Gupshup, ShareChat latest entrant to $1B club; total number rises to 10
In a first, surgery restores 'right' music to man's ear
Cargo transportation in Azerbaijan's Nakhchivan increases
Georgia reveals volume of pension fund's assets
Volume of SOCAR Ukraine’s aviation fuel supplies revealed
Baku Heydar Aliyev Airport gains 5-Star COVID-19 Airport Safety Rating
U.S., European consumers warm up to electric vehicles, but remain wary of price
Kazakhstan’s KAZAKHALTYN delists its shares from Stock Exchange
Azerbaijan's Nakhchivan sees increase in investments in fixed assets
Several contracts signed in Iran’s oil sector
Azerbaijan announces restoration of Araz newspaper's office building in liberated Fuzuli (PHOTO)
Domino's, Nuro to start robot pizza delivery in Houston
Turkmenabat cotton spinning factory of Turkmenistan exports most of its products
GDP of Azerbaijan’s Nakhchivan shows increase
Turkmenistan’s Foreign Economic Affairs bank talks volume of net profit for 2020
Average monthly nominal salary in Azerbaijan's Nakhchivan continues to grow
Kazakhstan Railways opens tender for rolling stock repair
Turkish Ziraat Bank shares forecast for Azerbaijan's GDP in 2021-22
Kazakhstan's gas consumption exceeds plan in 1Q2021
Kazakhstan’s Ulba Metallurgical Plant announces tender for equipment repairs
Iran has greater potential in technology than in oil sector - minister
Azerbaijan discloses daily volume of oil production for March 2021
Assets of Kazakhstan’s National Fund decrease
Iran's CBI allows some traders to import commodities, instead of revenues
Iranian technology companies produce number of aviation products
OECD countries’ crude oil imports fell in 2020
Georgia implements program aimed at supporting real estate sector
Total OECD natural gas imports decrease by over 5%
IMF reveals forecast for breakeven oil price in Azerbaijan
Iran reveals COVID-19 data for April 12
Production volumes in all sectors of manufacturing industry increase in Kazakhstan
Kazakhstan to consider bill on products omitted from EAEU Unified List
President of Belarus due in Azerbaijan
Iran wants return to JCPOA's original model - Iranian official
Time in Iran's favor - AEOI official
All news