The International Monetary Fund (IMF) has released its latest report on Guyana’s economic outlook, projecting the country’s oil revenues to soar to a staggering US$11 billion (GY$2.3 trillion) by 2028. This estimate is derived from royalties and profit oil stemming from no less than six floating, production, storage, and offloading (FPSO) vessels operating within the prolific Stabroek Block.
The report, unveiled in December 2023, underlines that this forecasted amount represents a substantial 36.5% of Guyana’s gross domestic product (GDP). The projections for oil revenues are meticulously based on anticipated earnings from oil exports, in alignment with guidelines established in the 2021 Natural Resource Fund (NRF) Act.
Commending Guyana’s commitment to fiscal prudence, the IMF highlighted the nation’s disciplined fiscal approach, paving the way for a balanced growth trajectory. The report anticipates a moderation in fiscal impulses, charting a course toward achieving a zero overall fiscal balance by the year 2028.
Guyana’s ambitious oil production targets signify a momentous leap, aiming to exceed one million barrels per day from six FPSOs by 2027. Vice President Bharrat Jagdeo expressed confidence that the burgeoning oil revenues will likely enable the country to settle its debts.
The recent start-up of Prosperity, the third FPSO, joining the Liza Destiny and Unity vessels, was warmly received by Guyana on November 14. Additionally, the future launch of the ONE GUYANA, Errea Wittu, and Jaguar FPSOs will add further momentum to the country’s oil production operations.