Guyana is among a group of countries that have introduced sweeping changes to their petroleum laws in a bid to stay competitive for upstream investment, according to GEOExPro, a worldwide energy magazine and online publication.
The publication reported, “Jurisdictions like Guyana, Vietnam, and Gabon opted for full-scale legal and regulatory overhauls, aiming to modernize outdated petroleum laws and respond to changing investor expectations.”
This comes against the backdrop of a sharp decline in available upstream capital, which GEOExPro noted has dropped from a US$779 billion peak in 2014 to about US$550 billion annually today.
The report, authored by Carlos Bellorin and Ruaraidh Montgomery of Welligence Energy Analytics, stated that between 2019 and 2025, at least 72 countries implemented major changes to their petroleum fiscal frameworks. Out of these, 62 made investor-friendly reforms while 10 went in the opposite direction.
Guyana’s decision to undertake full-scale reform aligns with governments facing pressure to monetize assets that could lose relevance amid the energy transition. GEOExPro explained that, “key motivations behind these reforms include declining domestic production, a reduced pool of E&P capital, and growing urgency to monetize stranded or underexplored assets.”
Africa and Southeast Asia have led the way in fiscal adjustments, while in Latin America the picture has been mixed. GEOExPro highlighted that “Brazil, Trinidad & Tobago, and Uruguay moved toward greater competitiveness, [while] Mexico and Colombia introduced investor-adverse policies.”
The publication also warned that some countries, including Colombia and Mexico, have taken steps that may deter investors, citing political or ideological motives. “Such measures, often driven by political or ideological motives, can damage investor confidence and may be difficult to reverse,” the report stated.
IEA warns of major drop in oil investment as clean energy gains momentum | OilNOW
Looking ahead, the authors noted that favorable fiscal terms alone will not guarantee new investment for countries like Guyana. GEOExPro stressed that “governments not only need to offer competitive terms – they must also execute efficiently to convert interest into investment”.
