The Guyana government will withdraw US$2.5 billion in oil revenue to support its US$6.628 billion (GY$1.382 trillion) budget for 2025, Senior Minister in the Office of the President with responsibility for Finance and the Public Service, Dr. Ashni Singh, announced on Friday.
The funds, drawn from the country’s Natural Resource Fund (NRF), represent the largest allocation from the oil sector since production began in December 2019.
The withdrawal is derived from the application of a legally prescribed formula in Guyana’s Natural Resource Fund Act, which limits annual withdrawals to oil revenues received in the previous year. OilNOW projected the specific amount in the lead-up to Dr. Singh’s presentation, confirmed in the budget appendix to be US$2.463 billion (GY$513 billion).
In 2024, Guyana’s oil fund, held by the New York Federal Reserve Bank, received US$2.57 billion (GY$536 billion) in deposits. This figure included over US$2.2 billion (GY$463 billion) from sales of 28 crude oil lifts and US$348 million (GY$73 billion) in royalties paid by ExxonMobil, Hess, and CNOOC, the contractors of the Stabroek Block.
Guyana’s Natural Resource Fund, established to hold its sovereign wealth from the oil and gas sector, ensures that withdrawals support national development while maintaining a savings buffer for future generations.
The US$2.46 billion (GY$513 billion) drawdown for 2025 will leave the fund with approximately US$636 million (GY$133 billion) in savings, comprising remaining revenue from 2024 and prior years. Parliament is expected to vote on the motion for the withdrawal in the first quarter.
The budget for 2025 increases Guyana’s reliance on earnings from the oil sector, using the revenue to meet 37% of its expenses, the highest portion in a fiscal year. Since first tapping its oil in 2019, Guyana has emerged as one of the world’s fastest-growing economies, driven by robust production from the Stabroek Block.
The revenue spike in 2024 marked a record year for the country’s oil sector, with crude oil production volumes and royalties at their highest. Officials from the Guyana government and the Exxon-led group anticipate that continued exploration and development work will sustain an upward trajectory of oil revenues.
