The State Oil Company of the Azerbaijani Republic (SOCAR) has announced that it will cut down on some expenses, such as social projects and sponsorship activities, as the price of crude oil dropped below $40.

A statement released by SOCAR said the company had to take measures in order to maintain its financial strength and optimize expenditures because of the continuously declining oil prices in global markets.

According to the statement, measures were set in accordance with SOCAR President Rovnag Abdullayev's instructions. Expenditure and the number of staff will be revised while trying not to harm the company's technical activities. Measures also stipulate that financial resources will be directed to more lucrative areas where expenditures are low.

The statement, which was signed by Abdullayev, said the company will cut down on social projects, sponsorship and charitable activities. SOCAR's belt tightening policies will also extend to transportation, communication and office expenditures. Until oil prices reach a favorable level, it will minimize activities such as exhibitions, conferences, seminars and symposiums.