Business intelligence firm, IHS Markit, has assessed Guyana as the 10th most competitive exploration and production jurisdiction in its Petroleum Economics and Policy Solutions (PEPS) analysis.
“Guyana today is in a competitive position… and I hasten to add, ahead of Brazil and ahead of Argentina,” IHS Markit’s Vice President Daniel Yergin told attendees at the International Energy Conference and Expo in Guyana last week.
Investors place a lot of stock in IHS Markit’s PEPS analysis. By having access to its intelligence on 100+ countries, prospective investors get a clear understanding of what the impacting legislation is, on the ground, as well as regulation, fiscal parameters and contractual terms characteristic to each country. It helps them manage risk.
For Guyana, major developments impacting such an analysis include generous incentives in contracts and a new local content regime that encourages foreign companies to partner with locals. The government has been warm and facilitating in its economic diplomacy, while grappling with long-standing barriers to ease of doing business in Guyana.
Yergin said that Guyana is proving itself a guide for other countries, as its approaches facilitate an environment of standards that will provide sustained development and improved standards of living. He said Guyana knows how to get things done.
“A framework for the development of the country’s resources in an appropriate way and in an environmentally responsible way that will work for the people of Guyana, and by the way, in addition, sends an important message to companies around the world that Guyana has a trustworthy investment climate which will bring investment and partners into other sectors,” he said.
The expert urged the government to be resilient against uncertainty in the industry, pointing to the example of the oil price crash of 2020, which was linked to the fallout from the COVID-19 pandemic and the Russia-Saudi price war. He also advised caution in managing the economy to prevent overheating, as a matter of ongoing importance.
Giving a word of advice, Yergin said, “Issues will come up, questions will come up, times will change, controversies will emerge, but resolving them within the sound framework that the government has established, and in partnership with the companies, that will be of benefit to all.”