Guyana is a very rich country yet half the population, based on a World Bank Report, live in poverty. In July the Natural Resource Fund (NRF) received more than US$268 million from oil sales and royalties. The International Financial Institutions ranks Guyana the world’s fastest growing economy and the richest per capita.
Guyana projected royalties for 2024 are pegged at US$319.9 million. This sum is likely to increase if current oil prices remain stable and production increase. In this year’s second quarter, the Fund received US$101.1 million in royalties for crude oil produced and sold. The three payments of quarterly royalties, so far this year amounted to US$263.5 million. The fourth quarterly payment is expected in October.
As of July, Guyana also received US$167.6 million (GY$34.9 billion) into the Fund for the sales of multiple lifts of the government’s crude entitlement. The total sum for 2024 was projected at US$2.08 billion for sales with 60% already received.
Earlier this year the Fund also received payments for two lifts of crude sold in 2023. Cumulatively, revenue from oil sales and royalties are expected to exceed Government’s projections. Interest accrued on the Fund’s income as at July is US$13.8 million.
As at July 2024, the government has withdrawn US$300 million from the Fund to support the 2024 National Budget, pegged at GY$1.146 Trillion which was approved in February and Supplemental Spending pegged at more than GY$40 billion which was approved in July.
Total withdrawals from the Fund as of July was US$850 million, with another US$736 million expected to be withdrawn before year’s end. Interest to the Fund in July was recorded as US$13.8 million.
The Fund closed in July with US$2.85 billion.
