Guyana’s Natural Resource Fund (NRF) earned US$141 million (GY$29.5 billion) in interest income in 2024, according to the government. This represents a 63% increase from the approximately US$87 million (GY$18.1 billion) earned in 2023.
The Fund, which holds Guyana’s revenue from oil sales and royalties, closed 2024 with a balance of US$3.1 billion (GY$646.4 billion).
The Board of Directors of the Fund had multiple meetings in 2024, as reported by the Bank of Guyana. They mandated that the funds be maintained in the deposit account held by the Federal Reserve Bank of New York, earning overnight deposit interest at the prevailing federal funds rate. In 2024, that rate stayed within the range of 5.25% – 5.5% until the latter part of the third quarter, when it was lowered to a range of 4.75% – 5%.
The Bank of Guyana monitors the overnight interest rate to inform the Chair of the Board of any changes that could lead the Board to assess the feasibility of redeploying cash.
The NRF Act, which governs all of the Fund’s operations, allows the government to calculate annual withdrawals solely from deposits made in the previous year. This leaves not only savings from previous years but also interest income.
Interest income accrued since oil production began amounts to US$245.8 million (GY$51 billion). The government projects that the NRF will gain US$87.6 million (GY$18.3 billion) in interest income in 2025; a conservative estimate reflected in their projections since 2022.
All revenue deposited into the NRF is derived from crude oil production at the ExxonMobil-operated Stabroek Block. The license area includes three developments, collectively capable of producing over 650,000 barrels per day (b/d). With other developments set to begin producing in the lead-up to 2028, production capacity is expected to exceed 1.3 million b/d.
