Oil revenue will not be used for emergency budget – Guyana Vice President

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.

Authorities in Guyana said on Monday no revenue from the country’s growing Natural Resources Fund (NRF) account will be used for an emergency budget set to be presented this week.

In December 2019, Guyana began producing oil at the ExxonMobil-operated Stabroek Block. As a result of payments received from oil sales and royalty receipts, the NRF which is held at the Federal Reserve Bank of New York, now has close to US$150 million.

“On the Natural Resources Fund… none of it will be used for the emergency budget but as we promised in the PPP Manifesto, we will move ahead to address that Natural Resources Fund to either repeal it or amend it and along with doing that we will strengthen the transparency provisions,” Vice President, Dr Bharrat Jagdeo told reporters. “…not only the budgetary provisions for the use of the resources but also a promise that we made of criminalizing non-disclosure. We will pursue that as soon as the budget is out.”

President Irfaan Ali acknowledged too on Monday that the country has needs given that it is in the midst of the coronavirus pandemic but would not at this time tap into the oil funds. He said the government has to make a number of investments now to create opportunities for the future that will require the government accessing as much resources as it can.

“But important too is also the issue of transparency and accountability and ensuring that systems are in place before we utilize any resources to make sure that our country and our people can understand that it is done in an open and transparent way and that there is no secrecy behind the use of any resources,” President Ali said.

He further added that the government is building up the framework, the institutions, the guidelines and rules necessary to ensure transparency in the oil and gas sector. “We [must] get the Petroleum Commission in place. We are putting in place the advisory body on local content. We have to get the body to perform the review [of the Payara project]. These are the things we are putting in place.”  

During a press event in August, Mr. Jagdeo had spoken of the “overwhelming dominance” of the influence of the Minister of Finance on the sector and the use of the funds as the reason that the government was seeking to make changes to the NRF legislation.

- 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