Guyana’s President Dr. Mohamed Irfaan Ali said the government projects revenues from oil will amount to US$10 billion annually by the end of the decade.
“Our Natural Resource Fund is growing and we are looking to the modernisation of our country; health, education, agriculture, and the expansion of the economy with revenues from the oil and gas sector,” Ali said during a press conference on Wednesday in Georgetown.
Government plans to spend about 60% of expected revenues up to 2025.
The Fund reached a new record market value of just over US$1.72 million (GY$359.34 billion) as of June 30, 2023.
The Fund has actually received more than US$2.67 billion to date, but the government has withdrawn more than US$1 billion in 2022 and the first half of 2023.
Approximately US$600 million more will be withdrawn before the year ends, to support Guyana’s national budget. However, the Fund is projected to collect more than US$970 million in royalties and profit oil payments in the period.
The Fund is therefore expected to close 2023 with about US$2.1 billion – mostly earnings from 2023 and some savings from 2022.
Guyana’s earnings are being impacted, the President explained, by increasing production of its medium-sweet crude from recoverable reserves ranked at #17 in the world.
The President reminded that current production from the Liza field has peaked at 400,000 barrels per day (bpd). Three additional projects – Payara, Yellowtail and Uaru – are expected to achieve first oil in 2023, 2025 and 2026 respectively. This will take production over the one million barrels per day milestone.
