SOFAZ HOLDS PRESS CONFERENCE ON RESULTS OF 9 MONTHS 2006
(SOFAZ).
SOFAZ ’s Executive Director Shahmar Movsumov highlighted the oil strategy of Azerbaijan initiated by nationwide leader Heydar Aliyev and successful continued by President Ilham Aliyev.
Mr. Movsumov said he had delivered report on how EITI is applied in Azerbaijan at the 3rd Extractive Industries Transparency Initiative Conference held October 16 in the Norwegian city of Oslo. The conference concluded establishment of the multisakeholder Board to manage EITI at the international level and to oversee the future operation of EITI. The EITI Board will consist of 5 representatives of implementing countries - Azerbaijan, Guinea, Gabon, Kyrgyzstan and Nigeria and 3 of supporting countries- the US, United Kingdom and Germany. Azerbaijan’s membership in the EITI Board corroborates the country’s leading role in implementation of EITI as a pilot country, which has already published 4 EITI reports.
Executive Director informed that the budget revenues of the State Oil Fund of the Republic of Azerbaijan (SOFAZ) for the period of January-September, 2006 reached 730,7 million manats (AZN), while budget expenditures constituted AZN 606, 8 mln.
Revenue of AZN 684, 3 mln was received from implementation of oil and gas agreements, including AZN 670,0 mln from the sale of profit oil and AZN 10,9 mln as transit fees, AZN 1,8 mln as bonus payments, AZN 1, 2 mln as acreage payments and AZN 0,4 mln from sale of assets received from foreign companies under PSAs. AZN 5,1 mln was received from State Oil Company of the Republic of Azerbaijan as the price difference between the contract value and domestic wholesale price of exported oil. The revenues from managing assets of the Fund for the reporting period amounted to AZN 41, 3 mln.
Expenditures of the Fund in the amount of AZN 46, 8 mln were directed to finance, as per 2006 budget of the Fund, building of housing and improvement of socio-economic condition of refugees and internally displaced persons. AZN 75,1 mln was utilized for the financing of AzBTC Co.’s share in Heydar Aliyev Baku-Tbilisi-Ceyhan pipeline project and AZN 455,0 mln was transferred to the State Budget. AZN 1, 7 mln was used for financing construction of the Oghuz-Gabala-Baku water supply system and AZN 7,5 mln was utilized for financing the reconstruction of the Samur-Absheron irrigation system. AZN 20,0 mln was directed to formation of the statutory capital of the State Investment Company. The Fund’s administrative and operation expenses in nine months were AZN 0, 7 mln.
The Fund’s extra-budgetary expenditures and payments, including asset revaluation expenses were AZN 29, 6 mln in the first three quarters of 2006.
The assets of SOFAZ as at September 30, 2006 grew by 7, 4% compared to the beginning of the year and stood at AZN 1 374, 8 mln (USD 1 569 mln.)
In conclusion, Mr. Movsumov responded from journalists’ questions.
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