SOFAZ to get nearly $100B in next 20 years (UPDATE)
Details added (first version posted on 11:32)
Baku, Azerbaijan, Nov. 24
By Anvar Mammadov – Trend:
The State Oil Fund of Azerbaijan (SOFAZ) will obtain about $100 billion from the sale of oil and gas in the next 15-20 years, said SOFAZ Executive Director Shahmar Movsumov.
Movsumov made the remarks Nov. 24 during a banking conference in Baku.
He said that as of today, SOFAZ received $120 billion from the sale of oil and gas.
“Despite a significant decline in oil prices, Azerbaijan continues production and export of oil, therefore, the country will further receive oil revenues,” noted the executive director.
Despite the fact that only one percent of the country’s labor force engaged in the oil sector, the sector provided 40-50 percent of Azerbaijan’s GDP, he said.
“Therefore, the oil sector is still important in order to ensure the country’s revenues. However, it is necessary to diversify the economy, to develop non-oil sector in order to reduce the level of unemployment,” noted Movsumov.
It is not very easy for oil producing countries – firstly, it is necessary to determine the fiscal order of distribution and expenditures of oil revenues, he said adding that currently, an analysis is being carried out in this area.
As of Oct. 1, 2016, SOFAZ’s assets increased by 6.7 percent and amounted to $35.82 billion as compared to $33.57 billion in early 2016.
SOFAZ was established in 1999 with assets of $271 million.