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Oil Fund`s statement: Another $4 bn to be on sale

06.04.2020,15:14


April 6, Fineko/abc. az. When approving the budget of the State Oil Fund of Azerbaijan (SOFAZ) for 2020, the price of crude oil a barrel in the budget was taken at the level of $55. The forecast of SOFAZ revenues amounted to AZN 12.38 bn ($7.284 bn) and expenditures AZN 11.589 bn ($6.817 bn).

ABC.AZ reports that the statement was issued by SOFAZ.

According to SOFAZ, at the end of Q1 of 2020 SOFAZ revenues amounted to $2.219 bn, including from the sale of profit oil and gas – $1.763 bn. The net average oil price for this period was $59 per barrel, and Fund's expenditures for Jan-Mar 2020 amounted to $2.76 bn (AZN 4.697 bn).

The excess of expenditures over revenues for Q1 of 2020 is explained by the fact that using the higher demand in the currency markets during this period compared to previous ones, SOFAZ decided to start making transfers to the State Budget ahead of time.

However, it is projected that SOFAZ's budget expenditures for 2020 will be met at the level approved in the budget, and in this context, it is expected that the funds in the amount of about $4 billion. They will be available for sale through auctions.

By Elmir Murad