Guyana’s Natural Resource Fund (NRF) received US$128.21 million (equivalent to GY$26.73 billion) in royalties and profit oil revenues for July based on operations in the ExxonMobil-operated Stabroek Block.
Delving into the details of these contributions, a publication by the Bank of Guyana noted a substantial US$73.77 million (approximately GY$15.38 billion) was recorded as payment for a singular lift of profit oil. This transaction marked the eighth such payment within the realm of Guyana’s 2023 oil revenue journey. Progressing along this trail, it has become evident that the Guyana government’s earlier estimations of accruing US$1.41 billion in profit oil revenues during the year have thus far materialized into the tangible form of US$621.33 million (a commendable 44 percent realization).
Continuing this financial narrative, the Bank of Guyana showed that a significant portion of US$54.44 million (equivalent to GY$11.35 billion) was designated for royalties, a vital component of the country’s earnings. This payment, standing as the third out of four quarterly instalments slated for this year, underscores the consistent rhythm of these financial contributions. As the year progresses, it’s notable that out of the projected total of US$225.15 million in royalties, a substantial US$165.29 million (a robust 73%) has already been transferred. The awaiting fourth instalment is earmarked for October, which would be the culmination of this financial cycle.
Zooming out to consider the broader horizon, the realm of outstanding oil revenues for the entirety of 2023, as envisioned by the government, encompasses a significant US$845 million (accounting for 52% of the year’s revenue projection).
The government’s fiscal strategy has, to date, harnessed US$400 million from the approved US$1 billion Fund, deftly directing these funds to fortify the national budget for 2023.
The Natural Resource Fund was established through the Natural Resource Fund Act in 2019 under the former coalition government. It was later replaced by the Natural Resource Fund Act in 2021, which was passed by the National Assembly on December 29, 2021, and assented to by the President on December 30, 2021. Under the Act, the Bank of Guyana is responsible for managing the Fund’s operations.
