The government has offered the parliament to amend the state budget for fiscal year 2016, because of the new situation at the world oil markets.
The current state budget of Azerbaijan, which was approved by President on December 7, 2015, was based on the average annual oil price of $50.00 per barrel. In January 2016 average export price of Azerbaijani oil was $32.00 per barrel and the international energy agencies have corrected the forecasts for this year – they reduced their average oil price from $53.00-57.00 down to $37.00-45.00. Therefore, the Azerbaijani government decided to amend the state budget for fiscal year for 2016 and base the budget on an average annual oil price of $25.00 per barrel.
According to the proposed amendments of the state budget of Azerbaijan, within the production sharing agreements (PSA) oil companies will pay only 370 million AZN (about $231 million at the current rate) to the state budget. Last year they paid about 670 million AZN. The payments of State Oil Company of Azerbaijan (SOCAR) were reduced to 1.24 billion AZN. In 2015 SOCAR paid 1.48 billion AZN to the state budget.—0—
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