Govt cannot access US$55M placed in oil fund – BoG Governor

Government cannot access the US$55 million deposited in the Natural Resources Fund (NRF), held in the New York Federal Reserve Bank—monies earned from the sale of the country’s first entitlement of one million barrels of crude oil from the Stabroek Block.

This is according to Bank of Guyana Governor, Dr Gobin Ganga, who in a brief interview with Guyana Times on Friday, confirmed the deposit and reminded that the fund is governed by an Act of Law.
As such, any spending from the special account requires prior approval from Parliament, he added.
It was noted that there is currently no functioning Parliament in Guyana, since the 11th Sitting of the National Assembly (Parliament), has been dissolved in order to pave way for the recently held elections.
Another Parliament will not be put in session until after a President is sworn in and a new Government put in place.
Further preventing the current Government from accessing the funds is the fact that the Act lists two committees – the Public Accountability and Oversight Committee and the Investment Committee – that are yet to be set up.
The political Opposition People’s Progressive Party/Civic had decided to not participate in the appointments since the party did not recognise the David Granger Administration as legitimate – a result of the passage of a No-Confidence Motion that was passed a month before the bill was debated and approved in the National Assembly.
The BoG Governor told this publication the Administration is prevented from accessing the fund, even if it tries to in light of the coronavirus disease and the Public Health Ordinance Act recently signed into force by President David Granger.
Under the Public Health Ordinance signed by Granger, the Finance Minister shall expend from the Consolidated Fund such sums of money as may be necessary for the effectual carrying out of identified measures to be undertaken by the various Ministries.
According to Dr Ganga however, this would not be applicable to the NRF.

Royalties
Asked about the payment of royalties since ExxonMobil and its partners—Hess Guyana Corporation and China National Offshore Oil Company (CNOOC)—began producing oil in December last, the bank of Guyana Governor told Guyana Times the country is still to benefit from any royalty since the payments are to be made quarterly.
Guyana lifted its first one million barrels of crude oil which was sold on behalf of the country by Shell Western Supply and Trading, which is Barbados’ branch for Shell International.
That first shipment was transported using Greek oil tanker, Cap Philippe.
Guyana’s first three cargoes have been sold to Royal Dutch Shell Plc, and the Department of Energy has since invited Request for Proposals (RFPs) to recruit a marketing firm on a term basis to assist in selling Guyana’s crude entitlement.
The country is expected to receive approximately five million barrels of oil this year.