Based in Baku, the State Oil Fund of the Republic of Azerbaijan (SOFAZ) is structured as an extra-budgetary fund and functions as a legal entity separate from the government or Central Bank. Prior to becoming an independent entity, it was a special account under the country’s national bank. The creation of the Fund was against the backdrop of implementing the country’s oil strategy, aiming at the efficient use of the domestic oil reserves and the management of oil revenues for the prosperity of the people.