Friday, December 2, 2022

Investors continue to pour in as Guyana’s offshore developments grow

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Interest from investors in the new oil producing country of Guyana continue to grow and this is expected to see major transformational projects getting underway in the coming months and years.

Guyana’s President, Dr. Mohamed Irfaan Ali, recently disclosed that a delegation from Brazil is expected to be in Guyana next month and major projects will be on the agenda for discussion.

“We have a very high-level visit that will take place next month from Brazil and in that visit, uppermost on the agenda, will be the deep water harbour and the road connection to Brazil,” he stated, noting that these were investments that were already on the cards.  

The expected visit by the Brazilian team comes as no surprise.  According to Wood Mackenzie, Guyana is on target to become the second largest producer of oil in South and Latin America, second only to Brazil. Back in 2018, it was announced by the former Guyana government that the Brazilian administration had offered assistance in the emerging petroleum industry, as the country has immense experience in the sector. Areas for cooperation that were being explored was Governance and regulation. It was also indicated that with Brazil having over 50 oil companies operating in the country, they would be aiding Guyana in attracting exploration companies.

Then, on Thursday, it was reported that Guyana’s Prime Minister, Brigadier (ret’d) Mark Phillips, discussed Guyana’s readiness for investment in areas including the emerging oil and gas sector, during a meeting with French Ambassador, Antoine Joly. 

“We have been meeting with a lot of investors regionally, internationally, and even locally,” President Ali said, noting that Guyana is about to go through “a period of tremendous transformation–infrastructure transformation, technological transformation and also transformation of our human resources.”

He was keen to stress that Guyanese must enjoy the benefits of the coming transformation through job creation and the growing opportunities in the economy, brought on by the oil and gas activities offshore. 

The President highlighted that his Government recently put out notices seeking Expressions of Interest for housing and hotel development, as well as private sector partnership in the sugar industry. “All of this is stimulating a lot of regional and international interest,” he said, adding, “We also went out with an Expression of Interest for the Demerara River bridge. We have conversations going on, on the Corentyne River Bridge.”

Guyana is expected to be producing more than 750,000 barrels of oil per day by 2026 and analysts say this will exceed the 1 million barrels per day mark by the end of the decade.

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