Guyana’s Natural Resource Fund (NRF) on Tuesday received a deposit of US$4.9 million, representing this country’s first royalty payment from offshore oil production.
Governor of the Bank of Guyana Dr. Gobind Ganga confirmed the payment and said that it brings revenues from oil in the NRF to close to US$60 million to date.
This country is entitled to five cargoes or five million barrels of oil this year as part of its profit share agreement with ExxonMobil and its partners, in addition to the 2 per cent royalty on all production in the Stabroek Block.
On March 13th, close to $55 million was deposited into the NRF account at the New York Federal Reserve Bank and came from sales of the first cargo of crude oil, which was sold in February.
Department of Energy Director Dr. Mark Bynoe has said that royalties would be paid on gross production and had pointed to the NRF Act, which sets out the timeframe for payment and management. The payment is to be deposited one month after the first quarter of every year.
In December of last year, when it was announced that the US Federal Reserve Bank was being used for the NRF account, the Ministry of Finance and the Bank of Guyana signed a pact. It set out the obligations of the Bank of Guyana as the operational manager of the NRF, which include receiving and accounting for all deposits, investing the NRF In eligible asset classes, appointing private managers and custodians, reporting on the performance of the NRF on a monthly, quarterly and annual basis, implementing management systems, procedures and risk management arrangements in accordance with international standards, and providing the public with information on the NRF as required by law, among others.
