This report is produced in accordance with section 38 (2) of the Natural Resource Fund Act 2019 which requires the Bank of Guyana to report on the performance and activities of the Natural Resource Fund (referred to hereinafter as the “Fund”).
This is the inaugural report of the Fund and covers the first quarter of the year 2020. All monetary references in this report have been reported in Guyana dollars (G$) and are presented in thousands (G$’000). Foreign currency transactions have been translated to G$ at the rate of exchange prevailing at the dates of the transactions. Rate of exchange at March 31, 2020 was GYD 208.50 = USD 1.
This report contains a Statement of Financial Position and Statement of Profit or Loss and Other Comprehensive Income.
(Georgetown, June 11, 2020) – The Natural Resource Fund was yesterday credited with US$35,063,582.06. This represents payment by Shell Western Supply and Trading Limited for Guyana’s second lift.
The total holdings of the NRF as at June 11, 2020 is US$94, 921,803.00
|Contact: Wanita Huburn|
|Phone: 592 -655-9497|
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.
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: