Oil money being held offshore to maximise interest — Jordan claims

first_img…pegs average long-term interest Govt looking to earn at 3%Emphasising that Guyana’s oil money will be safe and better able to earn interest in the hands of the United States Federal Reserve, both Finance Minister Winston Jordan and Central Bank Governor, Dr Gobind Ganga defended the move on Wednesday.Finance MinisterWinston JordanThe two officials met on Wednesday at the Finance Ministry to sign a Memorandum of Understanding (MoU) that laid the groundwork for the operationalisation and management of the Natural Resource Fund (NRF).When asked about the decision to bank the oil revenue at the Federal Reserve, Ganga noted that Guyana has long-held foreign assets at the Federal Reserve and it is in safe hands, when the other available options are considered.Moreover, Jordan pointed out that Guyana stands to make an average of three per cent interest on its investment. The Minister noted that Guyana could not earn interest if the money was saved locally.“There are different classes of assets. And these different classes of assets are invested in different markets, institutions and so on. The aim is to meet an average of 32 per cent long-term (interest),” he said.“After investing in all these different assets, the aim over time is 3 per cent. So sometimes you may get 1.5 per cent, sometimes you might be lucky to get 4 and a half per cent. Sometimes we might get 3.2, 2.8 per cent. The safer the asset, the lower the interest”.Bank of Guyana Governor, Dr Gobind GangaNRF ActPart VI of the act speaks to the management of the fund and states that the Minister shall be responsible for the overall management of the fund and shall – (a) be responsible for preparing the Investment Mandate and include the items specified in section 36; (b) when preparing or amending the Investment Mandate, seek the advice of the Investment committee established under section 13; (c) be assisted by the Senior investment Adviser and Analyst; and (d) enter into an operational agreement with the Bank for the operational management of the Fund.Section 12 (I) states that the Bank shall be responsible for the operational management of the Fund and shall manage the Fund in accordance with the Investment Mandate and the operational agreement. It further noted that the operational agreement shall state (a) the fee charged by the Bank for the operational management of the Fund;(b) the liability for paying damages to the Government for losses that occur due to negligence or intent on the part of the bank or private mangers in managing the Fund and (c) all other matters required for the effective operational management of the Fund.The Federal ReserveThe Act also provides for the committee to include a media representative proposed by the Guyana Press Association (GPA). Other entities that will have to propose representatives include the Guyana Bar Association, the Guyana Extractive Industries Transparency Initiative (GY-EITI), Transparency Institute of Guyana Incorporated (TIGI), the Guyana Consumers’ Association and the various trade unions.The Act specifically excludes persons such as Members of Parliament, Ministry staff, persons of unsound mind, ex-convicts and the bankrupt from serving on the Committee. It also lists the functions of the Committee, which will include monitoring and evaluating the compliance of Government and other officials related to the NRF, with the provisions of the Act.The Stabroek Block, by far the most successful oil block in Guyana, is 6.6 million acres (26,800 square kilometres). Esso Exploration and Production Guyana Limited is the operator and holds a 45 per cent interest in the Stabroek Block. Hess Guyana Exploration Ltd holds a 30 per cent interest, and CNOOC Nexen Petroleum Guyana Limited holds a 25 per cent interest.A contract was inked on October 7, 2016, between the coalition Government, ExxonMobil and its partners in the Stabroek Block. In the renegotiated contract, Guyana agreed to a two per cent royalty for every barrel of oil, a 50 per cent share of profit oil and a US$18 million signing bonus.Guyana’s profit-sharing arrangement with ExxonMobil is for 50 per cent of profit oil. But with Exxon reclaiming its investment costs as cost oil, it means Guyana will initially get 12.5 per cent of profit.Originally scheduled for 2020, first oil production has been moved up to this month. It is understood that the initial crude lifts will be one million barrels. With the first lift going to Exxon, Guyana is not expected to get its share until February to March.last_img read more

APT is offering a choice of two SuperDeals Book a

first_imgAPT is offering a choice of two SuperDeals. Book any itinerary of 16 days or longer before 30 June 2016 and you’ll fly to India for $795, including air taxes of up to $870. Alternatively book any India holiday of 16 days or more, staying in a Colonial, Heritage, Viceroy and Maharaja Suite, and fly business class from $1,995 per person. Terms and conditions apply and offers are subject to availability.Go back to the e-newsletter Go back to the e-newsletterThe addition of an exciting Sri Lankan discovery tour, a new houseboat journey through the Kerala Backwaters and the chance to go in search of the Royal Bengal Tiger are just three of the highlights of APT’s new India portfolio for 2017. The award-winning luxury travel operator has announced that for the first time travel agents have the opportunity to combine Sri Lanka with its already popular luxury India river cruising and land tours in 2017.The new nine-day Sri Lankan land journey takes guests to the key sights on the island, dubbed the ‘teardrop of India’. Highlights include a tour of the World Heritage-listed Sigiriya Rock fortress, the chance to dine by candle and flaming torches at a special dinner held in the enormous Caves of Heritance and enjoying high tea amidst the plantations in Nuwara Eliya.APT has secured some of the island’s most outstanding hotels including The Heritance in both Negombo and Kandalama, Earl’s Regency in Kandy and the historic Galle Face Hotel in Colombo.This exciting new journey features on two of the three core itineraries featured in APT’s India Featuring Sri Lanka 2017 programme. The most popular journey is the 22-day Spirit of India and Sri Lanka, an all-inclusive journey that travels from Negombo to Kolkata.Following the eight-night Sri Lanka tour, guests enjoy a six-night land journey that showcases some of the most famous icons of India – from Delhi to the Taj Mahal at Agra and the ‘Pink City’ of Jaipur – and then a seven-night lower Ganges river cruise aboard the luxurious RV Ganges Voyager.Priced from just $19,195 per person, twin share, guests stay at India’s leading luxury hotels, including The Oberoi Amarvilas in Agra, with its stunning views of the Taj Mahal. Sightseeing highlights include seven APT Signature Experiences, such as a cooking demonstration with a local Delhi family; and the chance to explore streets of Old Delhi by rickshaw.APT is just one of a few Australian travel companies offering river cruising in India. Sailing aboard the impressive RV Ganges Voyager on a round trip from Kolkata to Murshidabad, guests will enjoy cruise highlights including the opportunity to visit Mother Teresa’s house; learn about the local Hari Krishna community and culture; a tour of the Hazarduari Palace in Murshidabad, built by an English architect in 1837 and featuring 1000 doors and a collection of European paintings, china and weapons; and shopping at shore side bazaars.The ship features well-appointed suites, all with private ensuites, flat-screen televisions, on-demand movie systems and balconies. It also features a sun deck,  dining room, air-conditioned lounge, spa and gym and is designed to accommodate just 56 guests.Back by popular demand is the chance to cruise the backwaters of Kerala by majestic houseboat. This sought-after experience features as part of the 29-day Incredible India and Sri Lanka journey. APT has also introduced new sightseeing to its 21-day Wonders of India journey, which also includes Mumbai and Udaipur. In 2017 guests will travel to the largest national park in northern India, Ranthambore, to join a Canter Safari to spot wild Royal Bengal Tigers in their natural habitat.last_img read more