In the first quarter of 2024, inflows into Guyana’s Natural Resource Fund (NRF) have been substantial, at US$604 million (approx. GY$126 billion), according to a gazetted notice from the government of Guyana.
The contributions to the NRF are detailed as follows:
– On January 2, a deposit was made for a payment of US$73.57 million (approx. GY$15.34 billion) for a lift of profit oil, which was carried out in December 2023 from the Liza Unity FPSO.
– The NRF received a royalty payment on January 29 amounting to US$63.6 million (approx. GY$13.26 billion) pertaining to the 2023 fourth-quarter production. The next quarterly payment of royalties is expected in April. These royalties, which come from the co-venturers in the Stabroek Block, represent 2% of the value of the crude produced and sold.
– February 2 was marked by two deposits: one for crude from the Liza Destiny FPSO at US$76.54 million (approx. GY$15.96 billion) and another for crude from the Prosperity FPSO at US$73.14 million (approx. GY$15.25 billion), totaling US$149.67 million (approx. GY$31.21 billion) for profit oil lifts conducted on January 3, 2024.
– An additional payment for profit oil was recorded on February 15 from the Liza Unity FPSO, dating back to a lift executed on December 31, 2023, which amounted to US$75.33 million (approx. GY$15.71 billion).
– On March 6, the NRF saw a deposit from the lift of profit oil from the Liza Unity FPSO made on February 5, 2024, contributing US$81.66 million (approx. GY$17.03 billion).
– A lift of profit oil from the Prosperity FPSO on February 8 resulted in a deposit on March 8 of US$78.38 million (approx. GY$16.34 billion).
– The final noted contribution for the quarter came on March 25, with a payment for profit oil lifted on February 24 from the Liza Destiny FPSO, amounting to US$82.12 million (approx. GY$17.12 billion).
Guyana has already received approximately 20% of the expected US$319.91 million in royalties for this year and about 26% of the anticipated US$2.08 billion from oil sales in 2024.
The government has transferred US$250 million (approximately GY$52 billion) from the Natural Resource Fund (NRF) to its main bank account, the Consolidated Fund.
The National Assembly had approved US$1.586 billion (approx. GY$330 billion) to be withdrawn from the Fund to support Guyana’s US$5.496 billion (GY$1.146 trillion) national budget.
The withdrawals are expected to be done in several tranches throughout the year. Oil revenues will support 29% of the budget this year.
