Georgetown: On April 30, 2020, Guyana’s Natural Resource Fund account was credited with US$4,919,505.30 – the royalty payment for oil produced and sold from the Stabroek Block in the first quarter of 2020, according to the Ministry of Finance.
During this quarter, approximately 5,029,301 barrels were produced and sold from the Stabroek Block, and no crude oil produced during this period was used for fuel or transportation.
As such, and in accordance with Article 15.6 of the Petroleum Agreement for the Stabroek Block, the Government of the Cooperative Republic of Guyana was entitled to two percent of this quantity.
This deposit to the NRF represents the cash value of GCRG’s royalty entitlement, given GCRG’s election to receive its royalty payment in cash.
Further details on the monthly breakdown of royalty payments due to GCRG can be found in the Ministry of Finance’s monthly Report on Petroleum Production and Revenues.
Initially, Government proceeds from petroleum operations including royalties, a share of profit oil and income tax or corporate income tax will be directly deposited into the NRF.
The Ministry of Finance, with the advice of an Investment Committee – comprised of suitably qualified and experienced financial experts – will have responsibility for providing the Bank of Guyana with an Investment Mandate. Eligible investments are defined in the NRF Act and are to be managed according to the principle of passive investment management. The NRF Act also identifies two investment streams: 1) very safe investments which are limited to eligible bank deposits and eligible treasury bills; and 2) long-term savings for which investments in eligible asset classes are restricted by floors and ceilings.
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