Guyana’s Central Bank reported in its monthly financial statement for the Natural Resource Fund (NRF) that deposits have now ballooned to a whopping US$949,949,037.75. or GY$198,064,374,000.
At the end of August, no royalties were collected. There were also no withdrawals. Profit oil totalled GY$21,380,376,000 along with GY$374,687,000 in interest income.
Notably, two withdrawals of US$200 million have been made from the Fund. Hence, oil revenues to Guyana since oil production began total in excess of US$1.3 billion.
The country’s Finance Ministry recently noted that the State is expected to have 13 lifts of profit oil from the Stabroek Block. With the price of crude oil ballooning after the Russian invasion of Ukraine, NRF deposits are now projected to be 32.5% higher than the US$957.6 million projected at the time of preparing Budget 2022. Government is now projected to earn US$1.1 billion as revenue from the sale of its share of profit oil, and US$147.7 million in royalties in 2022, subject to the evolution of world market prices.
To date, there has been no investment mandate for the Fund and all petroleum revenues are held as cash deposits in the Natural Resource Fund account.
The revised Natural Resource Fund Act was passed in the National Assembly and assented to by the president on December 30, 2021. This revised Act assigns the responsibility for the preparation of the investment mandate to a Board of Directors.
This Board and committees with responsibility for Investment, as well as Public Accountability and Oversight, were appointed in August.