Guyana receives $2.5 billion in royalties at third quarter - Report

Guyana receives $2.5 billion in royalties at third quarter – Report

Oct 12, 2021 News

Kaieteur News – For the third quarter of 2021, inflows into the Natural Resource Fund amounted to $19.5B (US$91.92 million) comprising of profit oil totalling $16.6B (US$79.62 million) and royalties to the tune of $2.5B. This is according to the latest financial report on the Fund, which is prepared and published by the Central Bank.
The report noted that since its inception, the Fund which is held at the Federal Reserve Bank of New York has received G$81,030.74 million (US$388.64 million) from seven lifts of profit oil and G$9,888.21 million (US$47.42 million) from royalties.
The Fund has also earned $10.88 million (US$52,197.16) in interest income over the quarter. With respect to the market value of the Fund, the report notes that at September 30, 2021, it stood at $90,933.70 million (US$436.13 million), an increase of 26.72% ($19,176 million/US$91.97 million) from the previous quarter.
Furthermore, the Fund recorded a profit of $10.88 million (US$52,197.16) this quarter solely due to interest earned on deposits as the overnight deposit rate increased by five basis points.
To date, there has been no investment mandate for the Fund. A letter from the then Minister of Finance, Winston Jordan, dated June 8, 2020 stated that pending the constitution of the Investment Committee and preparation of the Investment Mandate, all petroleum revenue should be held as cash deposits in the Natural Resource Fund account.
The government has publicly disclosed its intentions to let the fund remain untouched in the Natural Resource Fund Account until a series of reforms is enacted to strengthen the regulatory infrastructure of the oil and gas sector.

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