BUDGET 2025: US$2.5 billion can be transferred from oil fund to support nat’l development

Guyana is set to receive a significant boost in 2025, with an estimated US$2.5 billion that can be transferred from the National Resource Fund (NRF) to the Consolidated Fund, supporting national development priorities.

Finance Minister Dr. Ashni Singh highlighted that 2025 will see 246 lifts of profit oil from the Stabroek Block. Within this, Government is projected to have 31 lifts of profit oil from the three FPSOs producing currently, along with the One Guyana FPSO which is expected to be commissioned in the second half of the year.

However, despite this promising outlook, there is a slight moderation in projected revenue, with the average price of Brent crude expected to decline to $71.9 per barrel in 2025.

As a result, government’s petroleum revenue deposits are forecast to be 2.6% lower than in 2024. Nevertheless, the government is still set to earn an estimated $2.2 billion in profit oil and $340.6 million in royalties from its offshore oil assets.

The substantial transfer of $2.5 billion from the NRF is seen as a vital source of funding to support Guyana’s growing infrastructure and development needs.

“Based on the 2024 petroleum deposits, an estimated US$2.5 billion can be withdrawn from the NRF and transferred to the Consolidated Fund to support national development priorities in this year’s Budget,” Dr. Singh said.

This infusion will be crucial for advancing key projects, including major infrastructural developpments, healthcare expansion, and other national priorities outlined in the 2025 Budget.