The President of Azerbaijan approved by his Decree dated July 22, 2010 the execution of the 2009 budget of the State Oil Fund of the Republic of Azerbaijan.
As per the Decree, the revenues of the Fund were executed with 8 176 692.0 thousand manats, and expenditures in the amount of 5 294 496.6 thousand manats.
In addition, according to the approved 2009 budget of SOFAR, the net incomes from the sale of hydrocarbons within contracts implemented in Azerbaijan amounted to 7.703 billion manat. This amount does not include costs for transportation of hydrocarbons, bank charges, the costs of customs clearance, independent control (Surveyor), marketing and insurance.
The amount of dividends payable to Azerbaijan in connection with the realization of oil and gas projects (particularly, Baku-Tbilisi-Ceyhan main export pipeline project) amounted to 156.823 million manat. Per acre payments, made by investors for the use of contract area in connection with the development of hydrocarbon resources, totaled 1.064 million manat in 2009.
Revenues for the transportation of oil and gas through Azerbaijan amounted to 8.909 million manat, bonuses (premiums) paid by investors to the State Oil Company or the authorized state body in connection with the signing or execution of oil and gas contracts amounted to 804,100 manat, income, received from the management of funds of the State Oil Fund reached 305.889 million manat, the share of income from other sources - 568,600 manat.
Of the total expenditure of the State Oil Fund, the expenses on financing measures aimed at solving social problems and issues of resettlement of refugees and internally displaced persons amounted to 89.883 million manat, on the project laying water pipeline from the Oguz-Gabala zone in the direction of Baku - 119.956 million manat, on the reconstruction of the Samur-Absheron irrigation system - 129.999 million manat, transfers under the credit agreement between Azerbaijan and Georgia to finance the building of the Georgian section of Baku-Tbilisi-Kars in - 22.117 million manat, on the State program on education of the Azerbaijani youth abroad in 2007-2015 - 7.912 million manat, and own (administrative) costs of the State Oil Fund amounted to 9.628 million manat.
The bulk of transfers from the State Oil Fund resources accounts for transfers to the 2009 Public budget of the Azerbaijan Republic - 4.915 billion manat. With regard to the financial performance of the SOFAR, the amendments to the Public budget were followed by the inevitable correction to the budget of the Fund. Both components of the budget SOFAR were significantly increased, and changes to the budget of the State Oil Fund in 2010 were approved by the decree by the President of Azerbaijan Ilham Aliyev on 22 July 2010.
The incomes of the Fund's budget were increased from 5.963 billion manat to 9.032 billion manat, and expenditures - from 5.428 billion manat to 6.428 billion manat. Thus, the total revenue of SOFAZ in 2010 should grow by 66 percent, while the expenses of the Fund will increase in the current year only by 18.4 percent. Thus, the forecasted revenue of SOFAR from the sale of hydrocarbons increased from 5.564 billion manat to 8.616 billion manat, revenue from the management of the Fund's resources increased from 241.936 million to 250.003 million manat, while revenues of Azerbaijan from the transportation of oil and gas through the country amounted to 9.641 million manat. It is emphasized that the increase in forecasted incomes of the Fund are linked with the fact that world oil prices remain at a fairly high level.
The transfers to the Public budget of increased from the projected 4.915 billion manat to 5.915 billion manat. In general, in the first half of the year, the assets of the State Oil Fund amounted to $19.2 billion compared to $14.8 billion at the beginning of the year (taking into account the reserves of the Central Bank of Azerbaijan as of the beginning of July amounted to $24.7 billion).