Economic development in Guyana is expected to progress in an accelerated manner, prompted in large part by the nascent oil and gas sector.
In 2023, the country’s real gross domestic product (GDP) is estimated to have grown by 33 per cent, with the non-oil sector recording a commendable 11.7 per cent expansion.
Senior Minister in the Office of the President with responsibility for Finance and Public Service, Dr Ashni Singh detailed this in his recent presentation of the 2024 budget.
He reminded that the government’s policy consistently entails supporting traditional pillars of the economy while spurring growth in the oil and gas sector.
In addition to this, creating the enabling environment for sustainable exploration and production of oil while remaining aligned with the global net-zero emissions goal is also a top priority.
Oil and gas exploration and production are set to intensify this year, with the newest addition to the fleet, Prosperity FPSO, set to achieve production of 220,000 barrels per day by March.
According to the senior government official, the oil and gas sector is estimated to have expanded by 45.9 per cent last year, with production of 142.9 million barrels of oil, compared with 101.4 million in 2022. This is due to increased production from the Liza Destiny and Unity FPSOs.
For context, Dr Singh explained that in 2023, the Liza Destiny FPSO produced crude oil at a rate of approximately 142,000 barrels per day (bpd), while the Liza Unity FPSO produced at a rate of 235,000 bpd.
At this rate, Guyana is said to be well on its way to achieving 1.2 million barrels of oil per day by 2027.
Against this backdrop, a keen effort is placed on ensuring transparency, accountability, and sustainable growth in the sector. The requisite legal, regulatory, and institutional framework has been an integral aspect in the move to maximise the benefits of the oil and gas industry.
For example, the Local Content Act lays out 40 services that oil companies and their sub-contractors must procure from Guyanese companies and Guyanese nationals.
It also imposes penalties for oil and gas contractors and sub-contractors who fail to adhere to the requirements set out in the law.
This legislation has opened massive avenues for Guyanese businesses and investors to create crucial partnerships and become employed to deliver a wide range of services.
READ MORE: Gov’t’s effective management of O&G sector paves way for sustainable growth – DPI Guyana