SOFAZ TO OBTAIN ADDITIONAL $7M WHEN OIL PRICES RISE BY $1 PER BARREL

"The State Oil Fund of Azerbaijan (SOFAZ) obtains additional $7m when world oil prices rise by $1 per barrel," Samir Sharifov, Executive Director of the SOFAZ told journalists, Trend reports.

"In accordance with our forecasts, Azerbaijani portion of profit production under the Azeri- Chirag-Gunashli contract area will comprise 7 million barrels in 2004. So, rise in prices will bring additional $7m to Azerbaijan," Sharifov noted.

Head of SOFAZ said oil prices set in the 2004 public budget in the level of $20 per barrel would be decreased. "$20 is too low. It would be better to set it at $25 per barrels, as the world oil prices are higher," he stressed.

According to Sharifov, SOFAZ has accumulated $830m (as of 1 April 2004 it has been fixed at $803m.), while $39m more will be obtained on June 9 from sale of the last portion of profit oil.

SOFAZ was founded 29 December 1999 at the presidential decree. In compliance with the Regulation of the SOFAZ, confirmed on 29 December 2000, this is non-budget public institution accountable to the head of state. The SOFAZ accumulates incomes obtained from the implementation of oil contracts, in particular, from sale of public share of profit oil transit fees for oil land gas transportation via the territory of the country, lease of state property.