Taking its cue from Guyana, which is earning nearly $7 million daily from offshore oil production, the government in neighboring Suriname says it will give every citizen living in the country a cash grant of US$750.00 each from future oil revenues.
Announcing the package at the 49th independence anniversary celebrations on Monday, President Chan Santokhi clarified that the government will pay the money from royalties and other revenues after actual oil production begins in 2028
Total Energies of France, which is the lead player in the offshore production effort, had earlier this year made the crucial final investment decision to go ahead with preparations for production in 2028 as well as to continue exploration activities in an offshore area adjoining Guyana’s prolific Stabroek Block now producing more than 650,000 barrels of oil daily.
Production began in Guyana in late 2019. Commercial discoveries were first announced in mid-2015.
“Today, I announce the financial instrument, under the name Royalties for Everyone (RVI), which offers the people of Suriname a share in future oil royalties,” Santokhi said. “The RVI instrument means that every
Surinamese who lives in our country receives a savings note, worth 750 US Dollars, with an annual interest of 7 %. The money will be paid out in the future from the royalty income of Block 58.
The payment will only be made when the oil from Block 58 has been sold, and Suriname has received the royalties,” he said, meaning that eligible Surinamese must wait for at least four years to collect the actual cash grant.
“The RVI is listed in US dollars so that it is stable in value; the payment will be made in Surinamese dollars. For people over 60 years old and people with disabilities, options are being developed to receive these before 2028.”
Just recently, authorities in Guyana announced plans to give every citizen who is 18 years and older US$500 each in a grant payout before year-end.
Opposition and social activists had been demanding a payout instead of $5000 each, saying the treasury can easily afford this from current and future payments when additional producing fields come on stream.
Santokhi, under pressure to keep his politically shaky coalition together as polls predict it will struggle in next year’s elections, said the cash grant is designed to allow everyone to share in future oil wealth, as Alaska and others have done, ensure citizens are rewarded for decades of economic sacrifice, and ensure it is seen as an effort to ensure all benefit regardless of political leanings.
“I expressly inform you that the RVI will be paid from future royalties to be received by the state of Suriname. The state will not be burdened with a loan and the future oil will not be pledged. The only thing that will happen is that part of the future royalty revenues will be allocated to the population,” he said.
General elections are slated for May 25 next year.
