Guyana oil account closes 2022 with US$1.27B

Jan 07, 2023 News

Kaieteur News – Senior Finance Minister, Dr. Ashni Singh submitted a Notification of Receipts to Parliament on Friday showing all petroleum revenues paid into the Natural Resource Fund (NRF). This report covered the period October 1, 2022 to December 31, 2022.

It was also published in the Official Gazette on the January 5, 2023. At the end of 2022, the balance in the NRF stood at US$1.27 billion.

It would be recalled that the NRF Act 2021, came into operation on January 1, 2022, replacing the illegitimate NRF Act 2019 passed by the A Partnership for National Unity + Alliance For Change (APNU/AFC) administration.

The NRF Act 2021 allows for substantial improvement in the management of Guyana’s natural resource wealth including the establishment of a Board of Directors which is responsible for reviewing and approving the policies of the Fund and monitoring its performance, thereby separating the management of the Fund from the Minister responsible for Finance.

Another key amendment in the new legislation is that the Minister of Finance could face up to 10 years imprisonment if he fails to disclose the receipt of any petroleum revenue received by Government in the Official Gazette within three months of receipt of such monies.

The International Monetary Fund (IMF), in its 2022 Article IV mission to Guyana in May-June of 2022, commended the People’s Progressive Party Civic (PPP/C) Government on the amendments made to the NRF Act and highlighted: “The NRF Act was strengthened recently. After a thorough review, and while restraining the spending of the oil receipts, the authorities amended the NRF Act December 2021. The recent amendments set clear ceilings on withdrawals from the Fund for budgetary spending.”

The PPP/C Government said it intends to continue to manage Guyana’s oil resources in a clear and transparent manner, to the benefit of present and future generations.

The chart attached to this piece shows a breakdown of the revenues received for the 2022 fourth quarter.