22 C
Georgetown
Monday, January 18, 2021

Finance Ministry to manage Guyana’s wealth fund

Must Read

Exxon targeting over a dozen wells, ramping up drill capacity offshore Guyana this year – Routledge

A flurry of activity is expected offshore Guyana this year as U.S. oil major ExxonMobil ramps up its search...

Oil demand will continue to climb says analyst, sees 50-year window for Guyana

Following the devastating effects of the coronavirus pandemic on the oil industry, multiple stakeholders have posited that the sector...

Maersk Drilling bags double-rig 500-day contracts for Suriname forays

Based on the previously announced Conditional Letter of Award, Maersk Drilling said on Sunday that it has been awarded...
OilNOW
OilNow is an online-based Information and Resource Centre which serves to complement the work of all stakeholders in the oil and gas sector in Guyana.

Guyana’s Natural Resource Fund—the South American nation’s Sovereign Wealth Fund for its Oil and Gas (O&G) earnings—will be managed by the Ministry of Finance, headed by Minister Winston Jordan. 

The Green Paper for the Natural Resource Fund that was recently laid before the country’s legislative body states that the “Ministry of Finance would be responsible for overall management of the NRF, including requested withdrawal in the Annual Budget Proposal; calculating the Fiscally Sustainable Amount; drafting the Investment Mandate; entering into the Operational Agreement with the Bank of Guyana and drafting the Annual Report and reporting on the NRF through the Annual Budget.” 

It also indicated that the Bank of Guyana (BoG) would be the Operational Manager of the Fund—managing it in “accordance with the Operational Agreement and Investment Mandate.” 

The Central Bank will also be responsible for drafting quarterly reports and annual accounts, as well as “procure Private Managers and draft Management Agreements and Investment Instructions.” 

The Private Managers in question will be mandated to “manage the overall investment portfolio in accordance with Management Agreement and Investment Instructions and submit reports to Bank of Guyana.”

Meanwhile, a seven-member Sovereign Investment Committee, which is to be established, would be responsible for advising the Minister of Finance on the Investment Mandate.

Spending and Accountability 

Money from the Fund will be used for transformative investments; however, in order for these funds to be used to finance such ventures the withdrawals from the Fund must be deposited into the Consolidated Fund “to form part of the financing streams for the annual budget.”

However, the Green Paper noted that “ withdrawals from the Natural Resource Fund cannot exceed the amount approved by Parliament” which has responsibility for approving the Annual Budget which would include the annual withdrawal from the Natural Resource Fund, and reviewing the Annual Report. 

 The Finance Ministry will also have to report to Parliament on the Fund and its use. “Ultimately, the Ministry of Finance would lay an Annual Report in the Parliament each fiscal year and provide further reporting through the annual budget process which will include additional documentation. Each instance would see comprehensive analyses being made public,” the Paper stated.

Latest News

Exxon targeting over a dozen wells, ramping up drill capacity offshore Guyana this year – Routledge

A flurry of activity is expected offshore Guyana this year as U.S. oil major ExxonMobil ramps up its search...

Oil demand will continue to climb says analyst, sees 50-year window for Guyana

Following the devastating effects of the coronavirus pandemic on the oil industry, multiple stakeholders have posited that the sector would never see pre-2019 oil...

Maersk Drilling bags double-rig 500-day contracts for Suriname forays

Based on the previously announced Conditional Letter of Award, Maersk Drilling said on Sunday that it has been awarded contracts for the deepwater rigs...

Oil falls as concerns mount over rising coronavirus cases in China

(S&P Global Platts) Crude oil futures tumbled during the mid-morning trade in Asia January 18, as rising coronavirus cases in China raised fresh demand-side...

Norway set to ramp up oil production by 19%

(S&P Global Platts) Norway expects its oil production to rise by 19% through to 2024 on the back of new developments such as Johan...

More Articles Like This