Finance Minister, Winston Jordan confirmed moments ago with Guyana Standard, that the nation is in receipt of its first royalty receipt which totals US$4,909,505.30. This sum has already been deposited into the Natural Resource Fund that is managed by Central Bank.
The Guyana Standard understands that the cashbased value of the royalty was determined using the average fair market price of a barrel of crude for January 2020, calculated in accordance with Article 13 of the Petroleum Agreement for the Stabroek Block. The average fair market price of crude for January 2020 was US$61.87 per barrel.
Using this price, the Finance Ministry had said that the value of the royalty for January 2020 would be US$1,268,706. Since Article 15.6 of the Stabroek Block Petroleum Agreement stipulates that the monies will be transferred to the Government on a quarterly basis, thirty (30) days after the end of each calendar quarter, the government was scheduled to collect royalty payments for January, February and March 2020 hence the current receipt is well over US$3M.
