Wednesday, February 8, 2023

Close to US$55M from Guyana’s 1st oil lift deposited into Federal Reserve Bank account

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OilNOW
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The revenue from Guyana’s first oil cargo of 1 million barrels of Liza crude has been deposited into the Natural Resource Fund account held by the Bank of Guyana at the Federal Reserve Bank of New York.

The Ministry of Finance in a press update on Thursday said on March 11, Shell Western Supply and Trading Limited, the company that was contracted to lift Guyana’s first three cargoes, deposited US$54,927,994.80 into an account held by the Bank of Guyana, as payment for the first lift in February 2020.

Greece-registered crude oil tanker, Cap Philippe departed Guyana waters in February with the government’s first cargo.

Director of the Department of Energy, Dr. Mark Bynoe had indicated that the one million barrel entitlement is part of Guyana’s profit oil allocation and does not include the two percent royalty, which would be paid on gross productions.

Ministry of Finance Public Relations Officer, Ms. Wanita Huburn, said the royalty payments will begin on April 30, 2020 and will be deposited to the same account. “The amount will be published in our next report,” she said, in an email response to a query from OilNOW.

Dr. Bynoe had indicated that in addition to the 2 percent royalty and 50 percent profit oil, Guyana will also be receiving withholding taxes, plus the direct and indirect benefits through employment creation and other revenue-generated income.

Guyana is entitled to approximately five million barrels of oil in 2020 as part of its profit share from production at the Liza Phase 1 Development.

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