SOFAZ's budgetary expenses predicted at level approved in annual budget

By Trend

Expenditures of Azerbaijan’s State Oil Fund of Azerbaijan (SOFAZ) are forecasted at the level approved in the annual budget, and in this context, it is expected that funds in the amount of about $4 billion will go on sale through auctions, SOFAZ told Trend on April 6.

According to the report, SOFAZ's expenses for January through March 2020 were implemented at the level of 40 percent of annual expenses.

"When approving the SOFAZ's budget for 2020, the price of crude oil in the budget was taken into account at the level of $55 per barrel. Accordingly, SOFAZ’s revenues amounted to 12.4 billion manat ($7.3 billion) and expenses - 11.6 billion manat ($6.8 billion)," the report said.

In connection with the sale of oil and gas from January through March 2020, a total profit of the SOFAZ exceeded $2.2 billion, profit from the sale of oil and gas amounted to over $1.7 billion, and the net average oil price amounted to $59. Meanwhile, SOFAZ’s expenses amounted to 4.7 billion manat ($2.7 billion).

The excess of expenses in the first quarter of 2020 may be due to the fact that the demand in the foreign exchange market during this period was higher than in previous periods, and transfers to the state budget were faster, said the report.

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