State Oil Fund revenues hit $2.8bn in 2020
By Ayya Lmahamad
The revenues of the State Oil Fund of Azerbaijan in connection with the oil and gas agreements in January- June 2020 amounted to AZN 4.9 billion ($2.8bn), the Fund reported on July 15.
Revenues from oil and gas sales amounted to AZN 4.1 billion (2.4bn), while the weighted average price of net oil during the reporting period was $38.7.
Premium payments made up AZN 767.8 million (451.6M), transit revenues AZN 10.6 million ($6.2M), and payments for area AZN 6.2 million ($3.6M).
Moreover, during the reporting period, SOFAZ budget expenditures amounted to AZN 5.8 billion ($3.4bn).
Despite a sharp decline in crude oil prices in this period, SOFAZ ensured fulfillment of its functions related to protection of macroeconomic and fiscal balance, performance of obligations to the consolidated and state budget.
Thus, AZN 5.6 billion ($3.3bn) was allocated to the state budget, AZN 140 million ($82.3M) to finance measures for the resettlement of IDP families and improvement of their social and housing conditions, and AZN 77,900 ($45.823) was allocated 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, SOFAZ management expenditures amounted to AZN 9.7 million ($5.7M).
Furthermore, for the second quarter of this year, revenues from fund management associated with the revaluation of SOFAZ assets amounted to AZN 1.9 billion ($1.1bn). The difference related to exchange rate fluctuations in the reporting period amounted to AZN 1.2 billion ($705.8M) as SOFAZ extra-budgetary revenues.
Additionally, at the end of the first quarter, the negative difference caused by short-term fluctuations of the market value associated with the revaluation of SOFAZ assets in reporting period amounted to AZN 194.9 million ($114.6M). The difference due to exchange rate fluctuations for this period amounted to AZN 935 million ($549.9M) of SOFAZ extra- budgetary revenues.
Thus, the assets of SOFAZ, which at the end of the first quarter of 2020 amounted to $41.3 billion, increased by $ 1.8 billion at the end of June and amounted to $43.2 billion US dollars.
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