Category: Natural Resource Fund Reports

26 May
By: MOF Communications Unit 0

Royalty Statement

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. 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 GRCG’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.

NRF Statement of Account – April 2020
Stabroek Block Royalty Statement Q12020
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23 Apr
By: MOF Communications Unit 0

Press Release – Natural Resource Fund

The Natural Resource Fund Act 2019, which was enacted by the Parliament of  the Cooperative Republic of Guyana, in January 2019, established our nation’s sovereign wealth fund (SWF), known as the Natural Resource Fund (NRF), for the purpose of managing the natural resource wealth of Guyana for the present and future benefit of the people and for the sustainable development of the country. On December 11, 2019, the Government entered into an operational agreement with the Bank of Guyana for the operational management of the NRF. On December 20, 2019, Guyana became an oil producing country, and, in February 2020, the Government’s first entitlement of crude oil was lifted from Liza Destiny, which amounted to just over 1 million barrels. On March 11, Shell Western Supply and Trading Limited, the company that was contracted to lift Guyana’s first three cargoes deposited US$54,927,994.80 into an account held by the Bank of Guyana, as payment for the first lift in February 2020

In establishing the NRF, the Government committed to managing the Fund according to the principles of good governance, including transparency, accountability and international best practices, including the Santiago Principles. The NRF Act 2019 requires several reports to be published, including, but not limited to:

1) Reports from the Public Accountability and Oversight Committee, Macroeconomic Committee and Investment Committee;

2) Reports on withdrawals from the NRF, to be included in the annual budget proposal and, if needed, in a Supplementary Appropriation Bill;

3) Annual reports of the NRF, including audited financial statements;

4) Quarterly reports and financial statements of the NRF; and

5) Monthly reports of the NRF.

On April 15, 2020, the Bank of Guyana, in accordance with section 38(1) of the NRF Act 2019, as well as the operational agreement with the Ministry of Finance, submitted the monthly report on the NRF for March 2020. On April 23, 2020, the Ministry of Finance, in accordance with section 42(c) of the NRF Act 2019, has published this report on its website for the public to access.

Download NRF Statement of Accounts:

Natural Resource Fund Statement of Accounts – March 2020
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02 Apr
By: MOF Communications Unit 1

Report on Petroleum Production and Revenues – January 2020

On December 20, 2019, Guyana became an oil producing nation. In anticipation of first oil, the Government of the Cooperative Republic of Guyana (GCRG) established, in January 2019, a sovereign wealth fund (SWF), known as the Natural Resource Fund (NRF), for the management of petroleum revenues. Following the rules set out in the NRF Act 2019 can help to safeguard against the resource curse1, as well as ensure that petroleum revenues benefit both current and future generations. In establishing the NRF, GCRG committed to managing the Fund according to the principles of good governance including transparency, and accountability, and international best practices including the Santiago Principles.2 To ensure transparency and accountability, the NRF Act 2019 requires several reports on the NRF to be published, including, but not limited to:

  1. Reports from the Public Accountability and Oversight Committee, Macroeconomic Committee and Investment Committee;
  2. Reports on withdrawals from the NRF, to be included in the annual budget proposal and, if needed, in a Supplementary Appropriation Bill;
  3. Annual reports of the NRF, including audited financial statements;
  4. Quarterly reports and financial statements of the NRF; and
  5. Monthly reports of the NRF.

These reports will allow the public to monitor deposits in, and withdrawals from, the NRF so as to ensure that petroleum revenues are being managed according to the provisions of the NRF Act 2019. However, these reports may not contain sufficient information to allow one to determine how government revenues that are deposited into the NRF are calculated. As such, the Report on Petroleum Production and Revenues (RPPR) serves to bridge this gap by providing regular updates on petroleum production and revenues. The regular publication of the RPPR will allow for greater transparency in this new sector of the economy, ensuring that the public is fully aware of the amount of petroleum being produced and revenues being generated. Such transparency is important, given the magnitude of revenues that will be generated from this resource.

Report on Petroleum Production and Revenues – January 2020
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17 Feb
By: MOF Communications Unit 4

Report on Petroleum Production and Revenues – December 2019

On December 20, 2019, Guyana became an oil producing nation. In anticipation of first oil, the Government of the Cooperative Republic of Guyana (GCRG) established, in January 2019, a sovereign wealth fund (SWF), known as the Natural Resource Fund (NRF), for the management of petroleum revenues. Following the rules set out in the NRF Act 2019 can help to safeguard against the resource curse, as well as ensure that petroleum revenues benefit both current and future generations. In establishing the NRF, GCRG committed to managing the Fund according to the principles of good governance including transparency, and accountability, and international best practices including the Santiago Principles.2 To ensure transparency and accountability, the NRF Act 2019 requires several reports on the NRF to be published, including, but not limited to:

  1. Reports from the Public Accountability and Oversight Committee, Macroeconomic
    Committee and Investment Committee;
  2. Reports on withdrawals from the NRF, to be included in the annual budget proposal
    and, if needed, in a Supplementary Appropriation Bill;
  3. Annual reports of the NRF, including audited financial statements;
  4. Quarterly reports and financial statements of the NRF; and
  5. Monthly reports of the NRF.

These reports will allow the public to monitor deposits in, and withdrawals from, the NRF so as to ensure that petroleum revenues are being managed according to the provisions of the NRF Act 2019. However, these reports may not contain sufficient information to allow one to determine how government revenues that are deposited into the NRF are calculated. As such, the Report on Petroleum Production and Revenues (RPPR) serves to bridge this gap by providing regular updates on petroleum production and revenues. The regular publication of the RPPR will allow for greater transparency in this new sector of the economy, ensuring that the public is fully aware of the amount of petroleum being produced and revenues being generated. Such transparency is important, given the magnitude of revenues that will be generated from this resource.

Download This Report

Report on Petroleum Production and Revenues – December 2019
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