The high inflow of oil revenues to Azerbaijan in recent years has led to large and unsustainable increases in government expenditures in the state budget and State Oil Fund of the Azerbaijan Republic. Given that oil revenues are exhaustible, volatile, and unpredictable, a sustainable fiscal policy must be enabled that allows for intergenerational equity, diversification in the economy, and predictable annual revenues that reduce pressures of appreciation. This paper aims to describe the recent and current management of oil revenues in Azerbaijan, provide a summary of international practices of natural resource management, and to make policy recommendations for future management of oil revenues.