Guyana has deposited US$1.86 billion in royalties and profit oil payments to the Natural Resource Fund (NRF) raking in GY$3.67 billion in interest in the last three years.
For 2022, the nation earned a whopping GY$3.65 billion (US$17.51 million) in interest and GY$25.9 million (US$0.12 million) in the preceding year. In 2020, interest earned stood at GY$1.58 million.
In its most recent report on the Fund, the country’s Central Bank noted that the NRF account sits with the New York Federal Reserve Bank. Over the fourth quarter of 2022, it was noted that the Federal Reserve increased its interest rate target range twice, moving it from 3% to 4.5%. This resulted in a higher level of interest income on Guyana’s overnight deposits than previous quarters.
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Bank of Guyana said the Fund earned GY$2,356.73 million (US$11.30 million) in interest income over the quarter compared to GY$995.75 million (US$4.78 million) the previous quarter.
These numbers are expected to increase with the onset of the Prosperity floating production, storage and offloading (FPSO) vessel, which will produce approximately 220,000 barrels of oil per day at the Payara field in the Stabroek Block starting in 2023.
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Senior Finance Minister, Dr. Ashni Singh recently disclosed that there will be 136 lifts of profit oil from the Stabroek Block in 2023. Government is projected to have 17 lifts of profit oil from the producing FPSOs, earning an estimated US$1.4 billion in profit oil and US$225.2 million in royalties in 2023, all of which will be deposited into the NRF.
Government has also disclosed this year that an estimated US$1 billion, equivalent to GY$208.9 billion, will be withdrawn from the NRF and transferred to the Consolidated Fund to support national development priorities.