In 2013 over $17 billion to be spent from the oil fund

By the presidential decree of December 30, 2012 the budget of the State Oil Fund of Azerbaijan (SOFAZ) for fiscal year 2013 has been approved.

According to the approved budget, SOFAZ incomes in 2013 are fixed at about 11,842 billion AZN, while the expenses - 13,403 billion AZN. The budget deficit is forecasted to be 1,921 billion AZN or about $2.45 billion.

The Oil Fund's budget for fiscal year 2012 was forecasted at 13,721 billion AZN of incomes and 10,561 billion AZN of expenses (it was corrected twice - in February and July). The last SOFAZ report for the period between January and September 2012 shows that 95% of the budget was fulfilled last year - the Fund's total incomes during 9 months, 2012 exceeded 10 billion AZN.

The Oil Fund's budget was based on the average Azerbaijani export oil price of $100 per barrel. Last year average export price of Azerbaijani oil totaled about $112 per barrel.

This year the list of income items of the Oil Fund has been expanded for the first time. In 2013 1,283,475,000 AZN (over $1.63 billion) of the oil incomes will be spent for the oil projects operated by SOCAR. The Oil Fund's expenses have increased and this year they will be equal to the costs of the trans-Anadolu gas pipeline (TANAP) project in Turkey ($110 million).

* According to SOFAZ, by December 1, 2012 the Fund's assets totaled $33,895 billion.-0-