Azerbaijan State Oil Fund budget for 2013 approved with a deficit of AZN 2 bn for SOCAR projects
Baku, Fineko/abc.az. The budget of the State Oil Fund of Azerbaijan (SOFAZ) for 2013 was approved with a phenomenal deficit of AZN 1.9 bn.
Under the relevant presidential order, SOFAZ budget was endorsed with income of AZN 11.48 bn and expenditures of AZN 13.4 bn.
Fund’s net proceeds from the sale of hydrocarbons attributable to the share of Azerbaijan (excluding the cost of transportation of hydrocarbons, the cost of banking, customs clearance, independent survey, marketing, insurance, and except for the income attributable to investments or equity stake of SOCAR) amount to AZN 11.17 bn. Income from placement and management of SOFAZ foreign currency assets are forecasted at AZN 287.448 million. Also, it is expected receipt of signature and other bonuses on the PSA contracts in the amount of AZN 11.96 million, revenues from oil and gas transportation in the country for AZN 9.2 million, acre payments for AZN 1.8 million and other income for AZN 500,000.
The basis of expenditures will consist of a transfer to the state budget in the amount of AZN 11.35 bn manats to exceed for the first time the expected revenue from oil sales (+ AZN 178.928 million). Direct investment from SOFAZ budget will be much lower, and will be generally associated with the projects of the State Oil Company of Azerbaijan (SOCAR) – AZN 1.28 bn of Fund’s expenditures. For instance, AZN 596.6 million will be directed to finance participation in the construction of oil refinery Star in Turkey, AZN 388.575 million in building of a new floating rig in the Caspian Sea, AZN 211.95 million in the construction of a new oil & gas processing and petrochemical complex (SOCAR OGPC), and AZN 86.35 million in engineering and construction of Trans-Anatolian gas pipeline (TANAP).
AZN 300 million will be directed for traditional funding of measures on social welfare issues and resettlement of refugees and internally displaced persons, AZN 107.438 million for the reconstruction of the Samur-Absheron irrigation system, AZN 138.27 million for the construction of the Georgian section of Baku-Tbilisi-Kars railway line, AZN 34.056 million for education of Azerbaijani youth abroad. To finance the project of high-speed fiber-optic network, providing the opportunity of access to all the settlements in Azerbaijan, it will be spent AZN 103.555 million.
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