Azerbaijan, Baku, April 28 / Trend , I.Khalilova/
The Azerbaijani government does not discuss an opportunity to up transfers of the State Oil Fund of Azerbaijan (SOFAZ) to public budget as part of correcting 2009 budget forecasts, SOFAZ Executive Director Shahmar Movsumov said.
"Generally, the state's policy does not focus on cutting SOFAZ's funds. Therefore, if it is necessary in future, I do not think the fund will make extra transfers," Movsumov said. "The priority of this year is not to cut incomes, but some 4.915 billion will be fully transferred to public budget."
Movsumov said they transfer funds to public budget in line with the Finance Ministry's schedule and "we transfer funds even by advancing the schedule" since early 2009. The SOFAZ transferred 1.330 billion manat to public budget in the first quarter.
Increasing the SOFAZ's incomes depends on two factors: forecasts say that oil production and price will increase by late 2009.
"Some 95-96 percent of the fund's incomes depend on oil sale, but oil prices have sharply dropped on world markets," Movsumov said. "At present this situation is stable and even prices are expected to rise by late 2009."
If an average oil price is $70, the SOFAZ's incomes will be 8 billion manat, where incomes from gas sale make up only 200-300 million manat. In the first quarter, an average oil price was $50 and the fund's incomes - 1.349 billion manat, some 1.272 billion of which falls to incomes from oil and gas sale.
A profit from the SOFAZ's managing with funds ranks the second in income and it is expected to get 200 million manat via this line in 2009.
"We expect that the Oil Fund's incomes will maintain previous year's rate in 2009," the head of the fund said.
The SOFAZ assets hit 8,721,400,000 manat ($10,863,900,000) as of April 1 2009, while they were 11.219 billion manat in 2008.
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