State oil Fund of Azerbaijan Republic

A number of contracts on the joint development of oil-gas resources have been signed with foreign investors in the framework of oil strategy conducted in Azerbaijan Republic since 1994. The first profits from these contracts, brought the issue of their effective use on the agenda with the purpose of establishing such a mechanism, State Oil Fund was founded with the December 29, 1999 Decree of the President of Azerbaijan Republic.

The Oil Fund Realizes the Contracts signed on the exploration and development of oil and gas. The amount collected in the Fund through its effective management of profits is directed to the solution of the following problems of the country.

Firstly, to preserve macroeconomic stability and ensure financial-tax discipline in the period of extensive foreign capital profit, to decrease dependence on oil profits and to ensure the development of non-oil sector as well;

Secondly, by taking into consideration the fact that oil and gas are national resources that can’t be restored to distribute the profit equally among generations and to collect reserve funds for future generations.

And the third, to finance important nationwide projects connected with the socio-economic development of our country.

The Supervisory Council controls the work of State Oil Fund of Azerbaijan Republic (SOFAR) on the collection and spending of the funds. The Council together with the auditor’s opinion reviews annual budget project annual report and financial report and gives its own opinion. 

Members of Supervisory Council who are approved by the President of Azerbaijan Republic represent state bodies and public organizations. In compliance with the November 27, 2008 №73 Decree of the President of Azerbaijan Republicç 7 members üere appointed to the Supervisory Council.