Guyana planning “paced ramp-up in spending” for oil revenues

Must Read

Saipem Guyana operations supported by 80 percent local workforce – Managing Director

Since starting operations in Guyana in May 2018, Italian multinational oilfield services company Saipem has established a...

E&P companies took up combined debt of $72 billion in Q2 2020 – EIA analysis

The United States Energy Information Administration (EIA) said its latest analysis has found that debt levels among...

Costly effects of pandemic make Paris Agreement 2050 targets unlikely – Wood Mackenzie

In light of the fact that nearly US$20 trillion or 25% of global Gross Domestic Product (GDP),...
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.

New oil producer Guyana is keen on ensuring the windfall from its vast offshore hydrocarbon resources is spent in a manner that does not ‘overheat the economy’.

“We are also mindful of the volatility inherent in petroleum revenues, as well as the risk of overheating the economy by spending too much too quickly,” Juan Edghill, Minister of Public Works said this week, in presenting the country’s 2020 budget before the National Assembly.

He said the medium term-fiscal framework will see a “paced and conservative ramp up in spending, financed by the prudent use of petroleum revenues and decreasing reliance on debt.”

Edghill, who served as Junior Finance Minister of Guyana in the past, expressed the view that while there are numerous monetary benefits that come with the industry, there is also risk associated with not managing the proceeds properly.

“Oil and Gas will bring not only significant financial resources and enormous transformational opportunities, but also many challenges,” he said. “There are many examples around the world where developing countries have obtained windfalls from oil and gas but have eventually ended up poorer than before.”

In view of this, he said the new government’s strategy takes into account the need for a framework for proper management of the resource as well as transparency and accountability.

“To ensure that our oil resource is managed responsibly, the PPP/C will establish an arm’s length Sovereign Wealth Fund [Natural Resources Fund] insulated from political interference,” he stated. 

He continued to explain that the government will define by legislation how funds will flow from the Natural Resources Fund into the budget, and the purpose for which they will be used. All efforts will be made to “Ensure that expenditures are transparently determined and go through the parliamentary process,” he said.

- Advertisement -

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest News

Saipem Guyana operations supported by 80 percent local workforce – Managing Director

Since starting operations in Guyana in May 2018, Italian multinational oilfield services company Saipem has established a...

E&P companies took up combined debt of $72 billion in Q2 2020 – EIA analysis

The United States Energy Information Administration (EIA) said its latest analysis has found that debt levels among Exploration and Production (E&P) companies...

Costly effects of pandemic make Paris Agreement 2050 targets unlikely – Wood Mackenzie

In light of the fact that nearly US$20 trillion or 25% of global Gross Domestic Product (GDP), is earmarked for responding to...

ExxonMobil empowering Guyanese women through global training programme

Several Guyanese women who have participated in the Global Women in Management (GWIM) training programme, funded by the ExxonMobil Foundation, have taken...

Exxon shortlists bidders for multi-billion dollar assets sale in Malaysia

(Bloomberg) --Exxon Mobil has narrowed the list of bidders for its oil-producing offshore assets in Malaysia that could potentially raise $2 billion...

More Articles Like This