State Oil Fund's revenues hit $3.6bn

27 October 2020 16:06 (UTC+04:00)

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By Ayya Lmahamad

The revenues of the State Oil Fund of Azerbaijan in connection with the profitable oil and gas agreements amounted to AZN 6.2 billion ($3.6bn) during the period of January-September 2020, the fund has reported.

The Fund’s revenues from profitable oil and gas sales amounted to AZN 5.4 billion ($3.1bn) during the reporting period.

Moreover, premium payments made up AZN 767.8 million (451.6M), payments for area AZN 6.8 million ($3.9M), transit revenues AZN 15 million ($8.8M).

Thus, revenues of the State Oil Fund of Azerbaijan during the reporting period amounted to AZN 6.5 million ($3.8M), while budget expenditures to AZN 9 million ($5.2M).

Revenues from asset management of the Fund for the reporting period amounted to AZN 358 million ($210.5M).

Fund’s extra-budgetary revenues due to exchange rate fluctuations amounted to AZN 2.3 million ($1.3M).

Likewise, Fund transferred AZN 8.8 billion ($5.1bn) to the state budget, during the reporting period.

Furthermore, AZN 178.5 million ($104.9M) was allocated to finance measures for the resettlement of IDP families and improvement of their social and housing conditions and AZN 0.4 million ($235,294) for financing the “State Program on Improvement of International Competitiveness of Higher Education System in the Republic of Azerbaijan for 2019-2023”.

During the reporting period, Fund’s management expenses amounted to AZN 14.9 million ($8.7M).

Additionally, as of September 30, the Fund’s assets decreased by 0.08 percent compared to the beginning of 2020 and amounted to $43.2 billion.

The decrease in assets was due to the fact that SOFAZ budget expenditures exceeded budget revenues, due to a drop in oil prices against the background of the global economic recession caused by the coronavirus pandemic.

Earlier it was reported that the State Oil Fund of Azerbaijan sold funds in the amount of $606.4 million at foreign currency auctions in September, which is 21 percent more compared to August.

SOFAZ was established in December 1999 by the Presidential Decree and is a sovereign wealth fund of Azerbaijan, which accumulates and preserves the nation's oil and gas revenues for future generations.

The Fund accumulates income from the sale of oil contracts, and in 2003 it started to make transfers to the state budget of Azerbaijan. As for now, SOFAZ contribution to the country’s GDP is over 80 percent.

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Ayya Lmahamad is AzerNews’ staff journalist, follow her on Twitter: @AyyaLmahamad