THE Ministry of Finance’s monthly report on the Natural Resource Fund (NRF) shows that revenue from Guyana’s first shipment of crude cargo has been deposited in the United States of America Federal Reserve Bank.

On March 11, Shell Western Supply and Trading Limited, the company that was contracted to lift Guyana’s first three cargoes, deposited US$54,927,994.80 into the account held by the Bank of Guyana, as payment for the first lift in February 2020.

The report stated that on April 15, the Bank of Guyana, in accordance with section 38(1) of the NRF Act 2019, as well as the operational agreement with the Ministry of Finance, submitted the monthly report on the NRF for March 2020.

Subsequently, on April 23, the Ministry of Finance, in accordance with section 42(c) of the NRF Act 2019, published the report on its website for the public to access.

Meanwhile, Guyana is expected to receive over US$1,268,706 in royalty for the first quarter of 2020 by April 30.

Though royalties are calculated on a monthly basis, Article 15.6 of the Petroleum Agreement specifies that the monies be transferred to the government quarterly, 30 days after the end of each calendar quarter.

Guyana became an oil producing nation on December 20, 2019 and, anticipating the same, the government set up a Sovereign Wealth Fund (SWF) – also known as the NRF — to safeguard against the resource curse and to ensure that petroleum revenues benefit both current and future generations.

The government has committed to managing the fund in accordance with international best practices outlined in the Santiago Principles.

These include reports from the Public Accountability and Oversight Committee, Macroeconomic Committee and Investment Committee; reports on withdrawals from the NRF to be included in the annual budget proposal and, if needed, in a Supplementary Appropriation Bill; annual reports of the NRF, including audited financial statements; quarterly reports and financial statements of the NRF and monthly reports of the NRF.

“These reports will allow the public to monitor deposits in, and withdrawals from, the NRF so as to ensure that petroleum revenues are being managed according to the provisions of the NRF Act 2019,” the Finance Ministry has stated.