Holistic plan to use oil monies will be made public – VP

…as 2025/2026 to see “steep ramp-up” in oil revenues

Vice President Bharrat Jagdeo has signalled that Government’s objective is to release a comprehensive plan to the public on how it intends to spend monies earned from the oil sector.

In a recently released interview, the former Head of State said the aim is to focus on priority sectors that would ultimately improve the lives of Guyanese, looking at access and improvement in services, among other areas. While his administration is keen on saving the oil revenues, he noted, there must be a balance.
“We cannot have poor people, people who don’t have water and electricity and basic minimum, and not address those concerns whilst we are saving for intergenerational equity. The process will be publicly identifying the project, saying how much money will be utilised from the fund for that project, ensuring that the Auditor General is also aware…It will require parliamentary approval. You know, we’ll go through the parliamentary process, where the project can be scrutinised, all the questions asked, and then implemented,” said Jagdeo.
The former Head of State also pointed out that accountability is high on Government’s agenda, ensuring transparency in any project undertaken. But to spend the money, Government would not use the framework established by the previous administration.
“Now, our idea is that, in the latter year, by 2026 or so, 2025/2026, you’re going to have a steep ramp up of how much money will come to us,” he added.
Oil revenues have accrued to about US$436 million thus far.
Just last week, oil giant ExxonMobil made its 23rd discovery of oil offshore Guyana, this time in the Pinktail well. The company announced that it found 220 feet (67 metres) of high-quality oil in the Pinktail well offshore Guyana.
It was explained that the Pintail discovery, which was drilled by the Noble Sam Croft drill ship, is 21.7 miles southeast of the Liza Phase 1 project.
Additionally, ExxonMobil was able to successfully appraise the Turbot-1 and 2 wells, where oil was previously found. In the case of the Turbot-2 well, drilling encountered 43 feet (13 metres) of net pay, separate from the oil previously encountered in the Turbot-1 well.
The Stabroek Block is 6.6 million acres (26,800 square kilometres). Guyana, with US oil giant ExxonMobil as the operator, began producing oil on December 20, 2019 in the Stabroek Block. Guyana’s oil revenues are being banked in the New York Federal Reserve Bank, where it is earning interest.
In March 2021, the Natural Resources Ministry had disclosed that, to date, a total of 5,009,797 barrels of oil, worth US$246.5 million, have been lifted. This sum, added to the royalties the country receives, took the total in the NRF account to US$267.6 million. And if one considers earnings from the sixth lift in April and royalty payments, this amount is expected to climb to over US$300 million.
Guyana received its first payment of US$54.9 million for an oil lift dated February 19, 2020. The second lift, on May 21, 2020, was valued at US$35 million; while the third lift, which occurred on August 9, 2020, was worth US$46 million. The fourth lift of oil offshore Guyana occurred on December 9, 2020 and came in at US$49.4 million in value. And on February 5, 2021, some 997,420 barrels of oil were lifted from Liza Destiny. A sum of US$61 million was paid for that lift.