The Guyana government ramped up withdrawals from the country’s oil fund in the first quarter of 2025, taking out US$400 million (GY$83.4 billion) to support the national budget, 60% more than the US$250 million (GY$52.1 billion) withdrawn during the same period last year.
The increase follows a larger budgetary allocation approved by the National Assembly, which authorized up to US$2.463 billion for 2025, compared to US$1.586 billion (GY$329.9 billion) for the full year 2024. The approved amount is expected to be disbursed in tranches over the year.
The withdrawal amount is derived from the application of a legally prescribed formula in the Natural Resource Fund Act. The Act limits annual withdrawals to oil revenues received in the previous year. In this case, the US$2.463 billion ceiling was calculated based on the US$2.57 billion (GY$535.9 billion) in oil revenues deposited into the fund during 2024.
With this sizable approved withdrawal, the fund is expected to retain approximately US$636 million (G$132.6 billion) in savings based on its balance at the end of 2024. Further deposits in 2025, projected to total approximately US$2.5 billion (GY$521.3 billion), are supplementing that amount, even as lower oil prices moderate revenue expectations.
There is also interest income, which amounted to US$34.11 million (GY$7.11 billion) in the first quarter of 2025, surpassing the US$29.56 million (GY$6.16 billion) earned in the corresponding period last year, according to the Bank of Guyana.
Notably, the 2025 revenue projection is based on higher oil production than in 2024. However, total government receipts from oil sales and royalties, as well as the overall value of crude exports, are expected to decline compared to 2024. This is due to lower oil prices prevailing in 2025. The decline in revenue will, in turn, reduce the amount available for withdrawal in 2026 under the fund’s rules.
All crude oil production is derived from the ExxonMobil-operated Stabroek Block.
