SOFAZ boosts foreign currency sale in April

4 May 2021 13:18 (UTC+04:00)

By Ayya Lmahamad

The State Oil Fund of Azerbaijan (SOFAZ) sold funds in the amount of $509.9 million at foreign currency auctions in April, which is 28.2 percent more compared to the transaction in March, the fund’s press service has reported.

So far, SOFAZ sold funds in the amount of $1.9 billion at foreign currency auctions in the first four months of 2021.

By comparison, in 2020, it sold funds in the amount of $3.8 billion at foreign currency auctions.

It should be noted that the revenues of the State Oil Fund from the major oil and gas fields amounted to $982.6 million in the first three months of 2021. Of these, revenues from the Azeri-Chirag-Guneshli block of fields, which are the largest oil fields in the Azerbaijani sector of the Caspian Sea, amounted to $953.4 million, while the fund's revenues from the Shah Deniz field, which is among the world’s largest gas-condensate fields, amounted to $29.1 million.

Established in 1999, SOFAZ is a sovereign wealth fund, which accumulates and preserves Azerbaijan’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's 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

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