Fourth FPSO Arrives in Massive Stabroek Block

ExxonMobil expects 1 million B/D of oil as ONE Guyana reaches Stabroek block.

April 19, 2025
By Jaxon Caines
Journal of Petroleum Technology

The ONE Guyana floating production, storage and offloading (FPSO) vessel arrived in Stabroek block, in preparation to begin operations in the ExxonMobil-operated Yellowtail field. It joins the Liza Destiny, Liza Unity, and Prosperity as the fourth FPSO in the prolific block, which holds over 11 billion bbl of recoverable oil. Built by SBM Offshore, One Guyana entered drydock at Singapore’s Keppel yard in 2023, and has undergone advanced construction and outfitting, including the installation of mooring structures and riser balconies. With an overall storage volume of 2 million bbl and a processing capacity of 250,000 B/D of oil and 450 MMcf/D of natural gas, One Guyana is expected to boost output to 940,000 B/D.

ExxonMobil is producing 650,000 B/D via its existing fleet of FPSOs in the Liza and Payara fields. One Guyana will allow Exxon, which controls all offshore production, to develop the Yellowtail and Redtail fields. Production from the Yellowtail project is expected to begin later this year following the completion of installation and well activities. The supermajor will then deploy the Errea Wittu and Jaguar FPSOs in the Uaru and Whiptail developments in the Stabroek block. Whiptail is expected to begin production in 2027.

ExxonMobil is seeking approval for its seventh and eighth projects—Hammerhead and Longtail— expected to begin operation in 2029 and 2030. By the end of the decade, the company projects production will more than double to 1.3 million B/D with a capacity ceiling of 1.7 million B/D.

December 2024 marked 5 years of Exxon production in Guyana. Since ExxonMobil announced first oil at its Liza Phase 1 project in 2019, Guyana has become the third- largest oil producer in the world on a per capita basis. The Houston-based supermajor’s Guyana projects are considered among the world’s most successful and efficient with an estimated breakeven cost below $30/bbl—lower than ExxonMobil’s Permian Basin cost of supply. The FPSOs also have a smaller emissions footprint than 75% of global oil and gas-producing assets.

Alistair Routledge, ExxonMobil Guyana president, told media,

“Our unrivaled success in developing Guyana’s oil resources at an industry-leading pace, cost, and environmental performance is built on close collaboration with the government of Guyana, as well as our co-venturers, suppliers and contractors.”

ExxonMobil operates the Stabroek block with 45% interest. Hess Corp. holds 30% interest, and CNOOC Petroleum holds the remaining 25% interest.

 

 

Guyana paid interest of US$80M on US$6B debt

Apr 18, 2025

The Central Bank reported that the Government spent US$196M to service ballooning debt, including interest of US$80M in 2024. The document stated approximately US$79.9M was paid in interest on the total stock of external and domestic debt. By the end of 2024, the total debt rose to almost US$6B, from a total public debt of US$4.5B in 2023. In 2024, total principal payments during the period amounted to US$119.7M.

The document states, “The total stock of government’s public and publicly guaranteed debt increased by 33% to US$5,994 million and represented 24.3 percent of Gross Domestic Product (GDP). This was due to a 37.4% rise in the outstanding stock of domestic bonded debt to US$3,745 million and a 26.1 percent growth in external debt to US$2,239 million. Total debt service grew by 10.5% to US$196 million and represented 5.2% of current revenue. Domestic debt service declined by 6.8% or US$5.2 million due primarily to a decline in principal payment during the review period. External debt service rose by 23.6% to US$125 million on account of increased principal repayments to both multilateral and bilateral creditors.”

In 2024, the green light allowed the government to raise ceilings on debt. The domestic public debt ceiling soared to $1.5 trillion, up from $750 billion from its last revision. A new external borrowing ceiling of $1.5 trillion was approved, after its last increase to $900 billion, as part of a broader financial strategy to expand capacity, to finance a $1.146 trillion 2024 budget, including large-scale infrastructure projects.

Opposition and other stakeholders raised concerns about borrowing and reliance on oil revenues to repay debt, the administration maintains that the country would be able to repay debt even without revenue from the petroleum industry.

In 2023, Vice President Bharrat Jagdeo, asked whether current borrowing could be sustained by the non-oil sector, replied,

“Yes, because as I pointed out now, our debt to GDP (Gross Domestic Product) ratio and our debt service to revenue ratio are among the lowest in the world today as I speak in spite of all the borrowing,” Jagdeo said.

In the presentation of Budget 2025, Finance Minister, Ashni Singh said that over the last four years, Guyana’s ratio of total PPG debt to GDP fell by over 20%. Debt to GDP ratio of 47.4% at the end of 2020 halved to 24.3% by the end of 2024.

Singh said, “this provides an indication of Guyana’s capacity to maintain public debt into the future without the need for fiscal adjustment, and places Guyana in the position of having one of the lowest debts to GDP ratios worldwide.

 

 

 

US$422 million signed in contracts for gas-to-energy transmission lines

April 9, 2025

The government signed contracts worth USD 422 million with Power China and Kalpataru to build transmission infrastructure for the 300-MW gas-to-energy power plant at Wales, the single largest investment in Guyana Power and Light’s infrastructure to date. The contracts will be executed in three lots. Power China was awarded Lots 1 and 3 valued at USD 256.7 million, while Kalpataru secured Lot 2 for USD 156.5 million.

The scope of work includes construction of 155 kilometres of 230-kV double-circuit transmission lines, 167 kilometres of 69-kV double-circuit lines, five new substations and upgrade of the Kingston Substation. The new substations will be built at La Bonne Intention, Enmore, Trafalgar, Williamsburg and East Berbice.

Minister within the Ministry of Public Works Deodat Indar said, “The timeline is one year and we are holding you to it. A lot of times we end up working with competitive bidders who, when they are awarded the contract, the haste, you don’t see it in the project. This signing today is part of the design to improve the energy infrastructure. This is what we mean when we say we are building infrastructure for the future.”

Indar noted that key elements of the broader gas-to-energy initiative are nearing completion.

“The substations will be completed in June, the control centre will be completed in August, all the parts are being completed to receive the power, so we want to make it, so when it comes it is distributed to the country and that is why we are doing this today.”

Demand for electricity continues to rise in Guyana with 13,974 new customers applying for power in 2024. The Demerara Berbice Interconnected System currently serves around 230,000 customers.

Power China is a Chinese state-owned engineering and construction firm specialising in energy and infrastructure projects, including power generation, transmission and hydropower.

Kalpataru is an India-based engineering and construction company focused on power transmission, oil and gas pipelines and infrastructure development across global markets.

 

 

 

Citizens to be allowed to invest in cooking gas & fertiliser plants

10 April 2025,

Vice President Bharrat Jagdeo told media that citizens would be allowed to invest in cooking gas and fertiliser production lines, as spinoffs from the gas-to-energy plants.

People would be allowed to invest in bonds “at a guaranteed interest rate” that would be “significantly higher” than commercial bank deposit rates. and there could be a limit on the size of the investment to win more investors.

Alternatively, a share structure would have to be developed and included for persons to buy a limited number of shares in the entities to have wider participation.

More people would be encouraged to invest if government underwrites their investment and provides a given number as returns. He floated the idea of cutting the margin and reducing the cost, while allowing small investors to benefit “in a real way”. The dividend policy will be based on profits… but it will not fall below 10 percent and this is particularly for farmers, teachers, public servants, small miners who want to invest.

Confident that liquid propane gas (LPG), would be a money spinner even at lower prices, VP Jagdeo said the bond issue would give small investors the opportunity to have a stake in the entity.

“We don’t want to give one man the ability to control this LPG or even the State”.

With the Guyana market able to consume less than one-third of the LPG produced here, the rest would be exported. Wealthier Guyanese, who want to invest in larger projects, would receive guaranteed access at a higher rate with the money used to develop public sector projects. Similarly, there will be an opportunity to invest in the fertiliser plant.

“We are going to cherry-pick some activities out of the oil and gas sector that are lucrative and democratise the structure for investing in these.” The Vice President sought to assure that foreign investors would not be excluded but the aim would be to include local stakeholders.. “We want to take the most lucrative opportunities and then allow widespread participation.”

 

 

 

Saipem lands $720m offshore contracts

RIYADH, 2 April 2025

Italian construction major Saipem, a global leader in the engineering and construction sector, secured new offshore contracts in the Middle East and Guyana for a total amount of $720 million.

Announcing the big contracts, Saipem said the group will first provide engineering, procurement, construction and installation (EPCI) services towards repairing damaged subsea pipelines for a major client in the Middle East over 3 years.

The second contract is a Limited Notice To Proceed (LNTP) by ExxonMobil Guyana, pending necessary government and regulatory approvals. It involves the EPCI of subsea structures, umbilicals, risers and flowlines (SURF) for the production facility and gas export system of the proposed Hammerhead oil field development project offshore Guyana.

The LNTP allows the group to start early work activities- detailed engineering and procurement, to ensure the earliest possible project startup in 2029, should the project receive the necessary government approvals.

The company will use various vessels, including Saipem FDS2, with logistics executed and managed in Guyana, generating employment and local content opportunities . The entire work will be completed in 4 years.

-TradeArabia News Service

 

 

Trump imposes 38% tariff on Guyana goods

April 3, 2025

On “liberation day” for American trade, President Donald Trump yesterday imposed a punishing 38% tariff on exports from Guyana, including seafood . The government said it will engage with Washington to better understand the issue.

A tariff is a duty imposed by a government on imported goods, making them more expensive in order to protect domestic industries or retaliate against unfair trade practices. Guyana’s largest exports to the U.S. include crude petroleum, gold, rice, fish, timber and sugar. In response to the tariff announcement, the Government acknowledged the new duties and confirmed that it is in active discussions with U.S. officials to better understand the decision and seek a resolution.

“The Government of Guyana has taken note of the reciprocal tariffs announced by the U.S. government. Our government is closely engaged with our U.S. partners to better understand the issue and have it addressed as appropriate.”

The White House yesterday listed Guyana’s tariff on US goods at 76%

Christopher Ram said: ”The 38% tariff announced by President Trump on imports from Guyana ranks among the highest imposed globally, with only a few countries, Lesotho and Saint Pierre and Miquelon, facing steeper rates.

The information released by Trump indicates that Guyana charges an average rate of 76% on imports from the U.S. President Trump will reciprocate with half of that average.

The 76% figure is questionable since no charge is made on fuel. We share a Common External Tariff (CET) and VAT structures with other CARICOM countries and yet they face only a 10% tariff.

Both the Government and the private sector need to address this apparent and unfair anomaly with the US Embassy in Guyana and Washington. Our country is not particularly skilled in statistics, but the Budget Speeches often highlight our exports of seafood, certain agricultural products, rum and gold. I understand that the Beharry Group exports pasta products and spices.

If this 38% rate stands, these sub-sectors will be severely affected with implications for growth, exchange earnings and employment. Coming shortly after our country’s declaration of strong bonds with the USA, the announcement is likely to rattle and upset the Government”.

Trump’s tariff package represents one of the most significant trade policy shifts in decades. He described the new tariffs as “kind” reciprocal measures, arguing that, while steep, they remain lower than what some countries charge the U.S.

Guyana, for instance, currently imposes a 76% tariff on American goods, which appears to have influenced the 38% tariff decision. As one of Guyana’s largest trading partners, U.S. tariffs will significantly impact Guyana’s local export industries.

In Trinidad, Suriname, Belize, Barbados, Antigua and Barbuda, Saint Kitts and Nevis, Grenada, Saint Vincent and the Grenadines and Saint Lucia, tariffs of 10% reflect their lower duties on U.S. imports.

The tariff on the European Union was 20%. The highest tariffs on China grew from 10% to 20% after China retaliated with tariffs of 15% on energy, then to 34%, which, combined with existing duties, brings the cumulative tariff on Chinese imports to 54% after China countered with 10% -15% duty on food.

The US responded with another 50% tariff, raising the cumulative tariff to 104%. China raised US tariffs to 84% and US countered with a hike to 145 % while pausing tariffs for 90 days on other exporters. China retaliated with tariffs of 125% on US goods as exporters sought trade deals with the USA.

Reuters report the new tariffs are part of a broader strategy to erect trade barriers around the world’s largest consumer economy, reversing decades of trade liberalization. Trading partners are expected to retaliate with countermeasures, potentially causing significantly higher prices for products .

“It’s our declaration of independence,” Trump said, displaying a poster listing reciprocal tariffs, as a response to duties placed on U.S. goods.

The announcement caused uncertainty, rattling financial markets and businesses that relied on longstanding trading arrangements. Although the administration stated that the tariffs would take effect immediately after Trump’s announcement, the official notice required for enforcement has not yet been published.

However, an official notice was issued for a separate set of tariffs on auto imports, scheduled to take effect on April 3. Trump has already imposed a 20% tariff on all imports from China, along with 25% tariffs on steel and aluminum, which have been extended to nearly $150 billion worth of downstream products. His advisers argue that these measures will restore vital manufacturing capabilities to the U.S. Economists warn that such tariffs could slow the global economy, increase the risk of a recession and raise living costs for the average U.S. household by thousands of dollars annually. Businesses expressed concerns that the barrage of threats makes it increasingly difficult to plan their operations.

This new tariff package builds on previous measures introduced by Trump, which included a 25% tariff on auto imports, a 25% tariff on steel and aluminum, and a 25% tariff on non-USMCA products from Canada and Mexico.

His latest move escalates the trade war that began upon his return to the White House, expected to disrupt global trade, increase prices for U.S. consumers and provoke retaliatory measures from trading partners. Financial markets reacted sharply, and U.S. stocks have lost nearly $5 trillion in value since February, as anxiety grows about the mounting trade uncertainties. Businesses, especially those relying on international supply chains, voiced concerns about the difficulty of planning for the future. However, Trump’s advisers insist that the tariffs are necessary to bring key manufacturing industries back to the U.S.

The White House defended the move, stating that “foreign trade and economic practices have created a national emergency. Trump invoked his authority under the International Emergency Economic Powers Act of 1977 (IEEPA) to impose these responsive tariffs, aimed at strengthening the U.S. economy and protecting American workers”.

Under the new order, a 10% tariff on all countries with effect on April 5, 2025. Individualized reciprocal higher tariffs on countries with the largest trade deficits with the U.S. will take effect on April 9, 2025. These tariffs will remain in effect until Trump determines that the trade deficit and underlying nonreciprocal treatment are resolved. Certain goods, including strategic minerals, pharmaceuticals, steel, aluminum, semiconductors and autos already subject to other tariffs, will be exempt from the reciprocal tariff. USMCA-compliant goods from Canada and Mexico enjoy 0% tariff, while non-compliant goods will incur a 25% duty.

Trump defended the new measures, saying that access to the American market is a privilege, not a right. He emphasized that reciprocal tariffs were a key promise of his campaign and central to his broader economic agenda, which includes energy competitiveness, tax cuts and deregulation. His administration cites studies suggesting that tariffs reduce imports, boost U.S. production and do not significantly raise prices for consumers. However, economists continue to warn that these tariffs could have broader negative effects on global economic stability.

On the 248th anniversary of the independence of the United States on June 27th last year, US Ambassador Nicole Theriot had lauded the growth in trade relations.

“Just a few years ago, we traded a few $100 million US worth of goods, but last year, we surpassed $4.6 billion US! We now have over 100 U.S companies in Guyana, and that number is growing every day. Through trade missions, conferences and exchanges between our private sectors, our companies are unleashing economic growth that supports the employment of thousands, providing a better future for Guyana. And it is occurring in many sectors.”

 

 

US will help Guyana succeed, protect energy sector

March 26, 2025

US supports oil production thrust, renewable energy is a complement not substitute

With rapidly growing oil production, Guyana is on the verge of becoming the world’s largest oil producer per capita, surpassing Qatar and Kuwait.

“It’s probably one of the greatest stories of the last five years. It’s seen as some of the greatest offshore opportunities in the world,” US Special Envoy for Latin America, Mauricio Claver-Carone, told media ahead of US Secretary of State Marco Rubio’s visit to Guyana.

Claver-Carone said that the US administration is keen on supporting countries like Guyana, recognising the immense potential of its oil development.

“We saw in the previous Biden administration, that countries like Guyana were asked to almost halt their development and progress in favour of renewables.”

While the US acknowledges the importance of renewables, it views them as complementary to oil production rather than a replacement. The administration is focused on helping Guyana succeed while safeguarding it from emerging threats to its energy sector.

“We want to see Guyana succeed. We want to see it develop. We believe renewables are complementary in that regard and are not a substitute. So, we want to support Guyana in this development but protect it also from the threats being posed.”

He related that Guyana’s security remains a ‘key priority’ amid continuing aggressions from Venezuela, which is attempting to assert claims to its territory. He referenced the Bolivarian Republic’s recent incursion into Guyana waters.

Venezuelan naval vessel, the ABV Guaiqueiri PO-11-IMO 469552, entered Guyana’s Exclusive Economic Zone, coming dangerously close — approximately 700 metres—to the FPSO PROSPERITY, operating lawfully under a licence issued by Guyana. The Venezuelan vessel made threatening radio communications, falsely claiming that the FPSO PROSPERITY was operating in Venezuela’s Exclusive Economic Zone. It then proceeded southwest, repeating the same aggressive message to other FPSOs operating in the region.

Claver-Carone said: “We’ve seen the threats from Venezuela. We’ve seen the approaches towards Exxon facilities. Obviously, that’s unacceptable and we want to work together to ensure and find an agreement towards binding security co-operation.”

December 19, 2024 marked five years since Guyana joined the ranks of oil-producing nations. ExxonMobil’s operations, in partnership with Hess and CNOOC, have reached a production capacity of approximately 650,000 barrels per day (b/d), accumulating over 500 million barrels of oil produced. These achievements were built on the foundation of strategic investments and operational learnings across three key developments: Liza One, Liza Two, and Payara.

The ripple effects of the oil boom are evident across various sectors. From infrastructure to public services, the government prioritised ensuring that oil revenues translate into tangible benefits for the population.Key among these is the revolutionary gas-to-energy project, slated for completion in 2025. This project will utilise offshore natural gas to replace heavy fuel oil for power generation, reducing electricity costs, cutting emissions and contributing to the stabilisation of the energy supply.

Guyana has emerged as a “significant influence” on the economic growth of the region, reporting 8.8 per cent growth in 2024. Examining the region’s key economic trends, the Caribbean Development Bank’s (CDB’s) Director of Economics, Ian Durant, last week, stated that Guyana was a standout performer with its economy surging by 43 per cent.

“When we include Guyana’s performance, regional growth rises to 8.8 per cent in 2024, up from 6.6 per cent in 2023.”

Guyana’s growth is fuelled by rising oil production and continued expansion in its non-energy sector. Further, regional growth is expected to remain moderate in the year 2025.

“The country’s (Guyana) performance will remain a key contributor to the region’s economic growth. The region is forecast to grow by 4.6 per cent.”

 

 

 

Commitment to Guyana’s sovereignty  & security

March 22, 2025

Border controversy…

– every square inch will be defended
– dialogue but not discourse under duress

Guyana stands resolute in defending its sovereignty, Commander-in-Chief of the Armed Forces, President Dr. Irfaan Ali stated, affirming that threats from the Bolivarian Republic of Venezuela will be resisted. The President outlined Guyana’s position at the commissioning of the Guyana Defence Force (GDF) Air Corps’ Hangar at the Eugene F Correia International Airport, Ogle. In a stirring call for unity, the President urged people to reject fear, embrace strength and recognise the power of solidarity.

“To my fellow Guyanese at home and abroad, let us stand united. Let us reject fear. Let us embrace strength. A divided people is a vulnerable people. A united people is an unstoppable force.”

He thanked the international community for standing with Guyana in upholding its territorial sovereignty.

“To our friends in the international community, we value your partnership. We appreciate your support. We stand with the principles of international law, and we call upon you to do the same. This is not just about Guyana. This is about respect for borders, for sovereignty, and for the rule of law.”

President Ali rejected the continuous spurious claims being made by the Bolivarian Republic over Guyana’s territory.

“To Venezuela, the message is simple: Respect our sovereignty. Threaten our sovereignty, and we will resist. Guyana will not be intimidated; Guyana will not be coerced. And let me repeat for those who still doubt: We will defend every square inch of our land. We will protect every drop of water in our seas. We will safeguard every citizen of this Republic. Amidst adversity, the true character of a nation emerges. This is a defining moment and we must meet it with determination and an unbreakable spirit. We will continue to stand firm in our sovereignty, because this is our land. This is our home, and we will never surrender it.”

The President also highlighted how the government will make every investment necessary to ensure that Guyana, its sovereignty and territorial integrity is secured.

“We believe in diplomacy but not dialogue under duress. Our neighbours would have chosen, on more than one occasion, to violate the ICJ’s orders and also the Argyle Declaration.

The very fact that they would seek to hold elections in territory which does not belong to them tells you that they are not serious about dialogue. They are not serious about the Argyle Declaration and we will not be drawn into any discourse under duress. We are all for dialogue- but dialogue with respect, dialogue with dignity, dialogue with a sense of purpose and dialogue that we can trust.

“So, therefore, if Venezuela wants to talk, let it first undo the acts that have violated the Argyle Declaration and the orders of the ICJ. Let it first demonstrate what faith is. Let it first respect the rule of law. Until then, there will be no talks. Sovereignty is not a matter for negotiation.”

Dr. Ali also underscored the importance of investing in GDF and affirmed that despite Guyana pursuing diplomacy and international law, it recognises the reality of the world.

“Even as we repose our confidence in the rule of international law and in the persuasiveness of diplomacy, we are not blind to the realities of the world we live in. A strong nation must have the means to deter and to identify threats. That is why we are investing in our Defence Force—not for war, not for aggression, but for protection, for development and for national security.”

 

 

 

 

Guyana rejects China suggestion of friendly negotiations with Caracas

April 19th 2025

Guyana’s Foreign Ministry rejected a statement by China’s Chargé d’Affaires Huang Rui, urging Georgetown and Caracas to resolve their border dispute over the Essequibo region through friendly negotiations, despite stressing that China “never intervenes in the internal affairs of other countries.”

Guyana insisted the matter was before the International Court of Justice (ICJ), as decided by the UN Secretary-General under the 1966 Geneva Agreement and will not engage in discussions outside the ICJ’s jurisdiction. The ministry also chided China for not addressing Venezuela’s plan to hold elections on May 25, 2025 for a governor and legislative council in the Essequibo, which Guyana views as a violation of its sovereignty.

Guyana upholds the 1899 arbitral award, while Venezuela cites the 1966 Geneva Agreement for a negotiated solution. The dispute, intensified by oil discoveries, remains a point of contention, with Guyana urging China to respect its territorial integrity and international law.

The Foreign Ministry “reminds the Government of the People’s Republic of China of the position made pellucidly clear on several occasions by the Government of the Cooperative Republic of Guyana that the matter is pending before the International Court of Justice by decision of the United Nations Secretary General, in accordance with the parties’ 1966 Geneva Agreement on settlement of the controversy.

The Argyle Declaration of December 14, 2023, recognises ‘Guyana’s assertion that it is committed to the process and procedures of the International Court of Justice for the resolution of the border controversy.. To that end, and in order not to undermine the jurisdiction or authority of the Court as the appropriate forum for the resolution of this controversy, Guyana will not engage in discussion of any matter that has been brought before the Court.”

Georgetown underlined that Beijing remained mum regarding the Bolivarian Republic of Venezuela’s intentions “to conduct elections on 25 May 2025 for a governor and legislative council of ‘Guayana Esequiba State’, which is the name Venezuela has given to Guyana’s Essequibo region. This is a clear violation of Guyana’s sovereignty and territorial integrity.”

Foreign Secretary Robert Persaud warned that China “needs to be principled in its position to respect Guyana’s territorial integrity and not to appease Nicolas Maduro’s serial violation of international law.”

 

 

Free tertiary education

April 25, 2025

Tuition fees were abolished at University of Guyana and government technical and vocational training institutions, technical institutes, Guyana Industrial Training Centre, Carnegie School of Home Economics and the Guyana School of Agriculture.

The University of Guyana (UG) will continue to admit students without charging tuition fees, following the government’s decision to abolish all tuition costs from January 1, 2025. for new and continuing students for Diploma, Bachelor’s, Master’s and PhD programmes offered by the University of Guyana.

It is encouraging prospective students to apply early, including those awaiting results from the Caribbean Secondary Education Certificate (CSEC) and Caribbean Advanced Proficiency Examination (CAPE) set by the Barbados-based Caribbean Examinations Council, to avoid disappointment with quotas being filled.

In February, President Irfaan Ali said the government is proceeding with the delivery of its manifesto commitment to provide free university education at the University of Guyana.

“This measure will benefit in excess of 11,000 current students at UG immediately, and of course, all the new entrants in the future. The future belongs to all of these young people,”

Amid these developments, the government introduced the Guyana Online scholarship programme, which benefitted 29,000 citizens and made tertiary level education more accessible for all Guyanese.

 

 

 

IMF expects Guyana ‘to continue to have rapid growth rates’

April 26, 2025

During a press conference on the Regional Economic Outlook for the Western Hemisphere, Deputy Director of the Western Hemisphere Department at the International Monetary Fund (IMF), Ana Corbacho, said that they expect rapid growth to continue, with Guyana hailed as the fastest-growing economy in the world since 2022,

Guyana has been the fastest-growing economy not only in the region but in the world, with an average growth rate of 47 per cent between 2022 and 2024.
“We expect Guyana to continue to have very fast growth rates in an environment of macroeconomic stability.”

She further indicated that in the current global and uncertain environment, maintaining macroeconomic stability is critical, along with continuing to strengthen resilience to shocks. This includes shocks from oil prices, as well as building strong institutions to ensure the benefits of oil wealth are shared across generations.

“Currently, oil revenues are already helping Guyana address very significant development needs.”

According to the IMF’s April World Economic Outlook, Guyana is poised to remain one of the world’s fastest-growing economies in 2025, with a projected GDP growth of 10.3 per cent.  This forecast places Guyana second only to Libya in economic expansion. Following the onset of oil production, Guyana has consistently achieved double-digit economic growth.

 

 

 

Chronology of the Guyana-Venezuela boundary dispute

International Arbitration Court members in Paris 1899International Arbitration Court members in Paris 1899

Nigel Westmaas  -March 23, 2025

The longstanding Guyana-Venezuela land boundary dispute occupies a distinct place in the annals of regional geopolitical conflicts. For Guyana , it has posed an existential threat, looming ominously especially since independence, exhibited in military hostility from Venezuela, decades of diplomatic skirmishes and ongoing border tensions.

Roots of this conflict lie deep in the colonial past, where European imperial powers drew borders across the New World, often indifferent to local realities and sensibilities. In the case of Guyana and Venezuela, competing historical narratives emerged, each staking claims to territories defined by imperial arbitrariness rather than geographical or cultural coherence.

This intensified dramatically in the 1960s when Venezuela formally contested the validity of the 1899 Arbitral Award (which Venezuela had accepted as a “final settlement” at least until 1905) that established the boundary with then British Guiana.

A tribunal of five arbitrators resolved the 1899 controversy between British Guiana and Venezuela, awarding most of the contested territories to Britain (now Guyana). The arbitration relied on international reputation and diplomatic pressures for enforcement rather than coercive mechanisms. The arbitrators representing Great Britain were Lord Justice Richard Henn Collins, prominent British judge and jurist and initially, Lord Herschell (Farrer Herschell), who died in 1899 and was replaced by Charles Russell, Baron Russell of Killowen, the Lord Chief Justice of England and Wales. Represent-ing Venezuela, arbitrators appointed by the United States on Venezuela’s behalf were Chief Justice Melville Weston Fuller and Associate Justice David Josiah Brewer, both from the United States Supreme Court. The tribunal’s neutral arbitrator and president was Professor Friedrich Martens (Fyodor Fyodorovich Martens), a Russian diplomat, international jurist, and scholar.

From independence, Guyana’s case had to be marshalled through several mechanisms, the Geneva agreement, the UN process, the ICJ and the Joint Declaration at Argyll.

Faced with persistent territorial claims from Venezuela, education becomes a vital instrument of soft power that can include mobilizing classrooms, textbooks and public fora to fortify national consciousness and defend territorial integrity. Through informed public education, successive Guyanese governments aimed to dispel misinformation, clarify national positions, and advance public dialogue. However, is this a sufficient approach?

Effective public education at all societal levels must transcend being merely the government’s responsibility. It must become a strategic tool intentionally deployed to strengthen and promote national unity, particularly on issues where unity already exists. The soft power approach—emphasizing that moral, legal, and historical evidence firmly supports Guyana’s claim to the Essequibo—is a crucial and enduring element in its diplomatic strategy.

One issue is whether the historical border matter between Guyana and Venezuela is best classified as a controversy, dispute, or problem. The terms controversy and dispute are often used interchangeably in discussions on the issue. Although the term controversy appeared before the 1960s, it became particularly prominent during the period surrounding the Geneva Agreement. However, the term dispute is perhaps the most formal and precise designation.

Indeed, dispute is legally recognized internationally as describing formal disagreements between states, particularly those related to territory or sovereignty. International law frequently refers to such disagreements explicitly as border disputes. Both the International Court of Justice (ICJ) and the United Nations (UN) officially classify the Guyana-Venezuela issue as a border dispute, underscoring the presence of formal competing claims and significant questions under international law.

The literature on the Guyana and Venezuela boundary controversy, like the legal material in general supporting Guyana’s claim over the Essequibo is huge, ranging from official documents, seminal diplomatic assessments, academic articles in journals, newspaper editorial commentary and assembly of parliamentary debates dating back to the 19th century and photographs and maps that continue to proliferate on the ongoing dispute.

In the late 19th century, the Daily Chronicle published letters addressing the boundary question, a territorial dispute concerning British Guiana (now Guyana) and Venezuela. These discussions appeared as early as 1887, nearly a decade before the official Arbitration Award of 1899, which ultimately favoured British Guiana.

The issue continued to captivate public and political attention, particularly in the 1960s as Guyana approached independence. During this pivotal period, the press, including editorials, letters to the editor and feature columns, actively engaged with the border controversy.

Public debate intensified, reflecting growing national consciousness and the importance placed on clearly defining territorial sovereignty prior to independence. Robust coverage by the press played a crucial role in informing the public discourse and shaping the emerging national identity around issues of sovereignty and territorial integrity.

Among the headlines in Guyanese newspapers in the early 1960s include the following in the Guyana Graphic:

1. 1. 1. “Most Venezuelans unaware of border dispute – Gajraj” August 4, 1965
      2. “When the Venezuelans invaded Guiana” (David Granger) August 8, 1965
      3. “Venezuela not happy – rich oil strike” August 11, 1965
      4. “Not an inch – to Venezuela says govt” October 10, 1965
      5. “Land showdown? Venezuelan ambassador calls off talks” October 16, 1965
      6. “No backing down – Venezuela = but we wish no war with BG in and claim” October 19, 1965
      7. “Border talks – a moral victory over Venezuela” Guiana Graphic, October 22, 1965
      8. “No word from Venezuela – border summit may not come off” November 3, 1965
      9. “PPP comments on Venezuela border claim” November 6, 1965
      10. “Police quiz Venezuelans held by border patrol”, November 26, 1965
      11. “Venezuelan flag burnt at consulate” October 15, 1966
      12. “Venezuela threatens our survival, says Ramphal” July 17 1968
      13. “PM holds talks with opposition”, July 19 1968

At a more formal diplomatic level there have been plethora of Guyana foreign ministry reports for international fora defending Guyana’s position throughout the different administrations that have ruled Guyana since independence.

At a scholarly level, the works of Henry Jeffrey, Noel Menezes, Cedric Joseph, Nigel Gravesande, Cedric Joseph, Jay Mandle, Odeen Ishmael, and many others are available for informed and “armed” Guyanese.

The following chronology highlights key moments in the border controversy from the earliest period to the Argyl declaration:

Chronological timeline of key events: Guyana – Venezuela border controversy

1. 1. 1. 1494: Treaty of Tordesillas: agreement between Spain and Portugal, mediated by Pope Alexander VI, intended to settle disputes over newly discovered territories.
      2. 1814: Treaty of London – Britain given Essequibo, Demerara and Berbice succeeding the Dutch
      3. 1823: Monroe doctrine: that the Western Hemisphere was closed to future European colonization or intervention. While it asserted neutrality toward existing European colonies, it warned European powers against further territorial ambitions in the Americas, implying that such actions would be viewed as threats to US interests. Over time, the doctrine shaped US foreign relations, becoming a justification for American dominance and intervention throughout Latin America, the Caribbean and Asia Pacific.
      4. 1830s: Venezuela becomes independent of Spain
      5. 1835–1840: Britain commissioned surveyor Robert Schomburgk maps British Guiana’s frontiers. Schomburgk’s survey (completed in 1840) proposed the “Schomburgk Line,” extending British Guiana’s claim by roughly 30,000 square miles westward
      6. 1841: Venezuela – which had become independent from Spain by 1830 – protested the British boundary claim as an encroachment. Caracas asserted that the true boundary was the Essequibo River, effectively claiming all territory west of the Essequibo
      7. 1844–1850: Britain offered a compromise in 1844 (giving Venezuela control of the Orinoco river mouth), but Venezuela ignored it
      8. 1876: The dispute flared up again after gold was discovered in the contested interior. Britain advanced new claims to about 33,000 additional square miles beyond the Schomburgk Line (into what Venezuela saw as its territory)
      9. 1886–1887: Britain unilaterally declared the Schomburgk Line as the provisional frontier in 1886
      10. 1887: Venezuela breaks off diplomatic relations with Britain
      11. 1876-1896: Venezuela called for US support based upon Monroe Doctrine of 1823
      12. 1887 +: US urged Great Britain and Venezuela to renew relations while offering Venezuela her sympathy
      13. 1894: Venezuela invokes Monroe doctrine, especially the Olney corollary, that is, that the British attitude represented a challenge to the Monroe Doctrine. Subsequently, in October 1894 “Venezuelan forces crossed the border into British Guiana and established a post; the British colonial police and magistrate left without putting up any resistance.”
      14. 1895: The crisis peaked with the Venezuelan crisis of 1895. US President Grover Cleveland’s administration, citing the Monroe Doctrine, demanded that Britain submit the matter to international arbitration. The Olney Corollary was an extension of the Monroe Doctrine articulated in 1895 by US Secretary of State Richard Olney. It asserted that the United States had the authority to intervene in territorial disputes within the Western Hemisphere, particularly between European powers and Latin American countries.
      15. 1897: Treaty of Arbitration launched in Washington (aka Treaty of Washington)
      16. 1899: An international tribunal in Paris issued its Arbitral Award after meeting for “some fifty-five sessions”, which fixed the boundary largely along a modified Schomburgk Line. Venezuela officially accepted the award as a “full, perfect, and final settlement” at the time.
      17. 1905: The boundary survey was completed by a mixed commission, and concrete markers were placed, finalizing the border per the 1899 Award.
      18. 1949: In 1944, Severo Mallet-Prevost, who had served as the official secretary for the U.S.-Venezuela delegation during the 1899 Paris Arbitral Award concerning the Venezuela-British Guiana boundary dispute, penned a memorandum to be published posthumously. In this document, he alleged that the arbitration decision, which largely favoured Britain, resulted from political pressure exerted by the tribunal’s president, Friedrich Martens, leading to a compromise that deprived Venezuela of rightful territory. The memorandum was released in 1949, after Mallet-Prevost’s death, and reignited Venezuela’s claims over the region whose boundaries were settled by the 1899 decision.
      19. 1962: Venezuela formally renounced the 1899 Award and revived its claim to the Essequibo region. Venezuelan Foreign Minister Marcos Falcón Briceño told the United Nations that the award was “null and void” due to the alleged collusion revealed in the Mallet-Prevost memo.
      20. 1966: Geneva Negotiations – the UK, British Guiana, and Venezuela signed the Geneva Agreement of 1966 – a treaty to seek a “practical, peaceful and satisfactory” resolution to the controversy.
      21. In a provocative move shortly after Guyana’s independence, Venezuelan troops occupied Ankoko Island, a small border island in the Cuyuni River that is half within Guyana. Venezuela unilaterally built a military outpost there, which it maintains to this day.
      22. 1970: With the Mixed Commission’s four-year term ending without a resolution, the parties agreed to a 12-year moratorium on the dispute. Guyanese Prime Minister Forbes Burnham and Venezuelan President Rafael Caldera signed the Port of Spain Protocol (in Port of Spain, Trinidad), which put Venezuela’s claim on hold until 1982
      23. 1982–1983: As the 12-year Port of Spain moratorium approached expiry, Venezuela signaled it would revive the claim. During the 1982 Falklands War (UK vs. Argentina), Venezuela expressed renewed interest in Essequibo
      24. 1983: Venezuelan President Luis Herrera Campins refused to renew the Protocol when it lapsed, formally reasserting Venezuela’s territorial claim
      25. 1990: The United Nations Secretary-General, acting under the Geneva Agreement, appointed a Good Officer process to mediate. Over the ensuing decades, U.N.-appointed envoys engaged in talks with Guyana and Venezuela
      26. 1999–2004: Venezuelan President Hugo Chávez initially took a less confrontational tone. Under Chávez (who came to power in 1999), Venezuela focused on regional integration and at times downplayed the Essequibo claim. In 2004, during a visit to Georgetown, Chávez even remarked that he considered the border controversy “finished,” signalling a desire for warmer relations
      27. 2013: A Venezuelan navy vessel seized the seismic research ship Teknik Perdana, which was surveying for oil in offshore waters claimed by Guyana
      28. 2015: Venezuela responded forcefully to Guyana’s oil breakthrough. In May, President Nicolás Maduro issued a decree unilaterally extending Venezuela’s maritime boundaries to encompass nearly all the waters off Guyana’s Essequibo region
      29. 2018: With Guyana’s support, the UN Secretary-General formally referred the dispute to the International Court of Justice
      30. 2020: The ICJ ruled that it has jurisdiction to hear the case (specifically, to determine the validity of the 1899 Award). The ICJ ordered Venezuela to refrain from “actions that would alter Guyana;s control over the disputed area…pending a final decision in the case.”
      31. 2023: In a dramatic escalation, Venezuela held a national referendum asking its citizens whether to make the Essequibo region a formal Venezuelan state. Following the referendum, Venezuela’s National Assembly approved measures to formally annex Essequibo. Venezuela published new official maps showing the disputed 159,000 km² region as its “State of Guayana Esequiba”
      32. December 2023 : Joint declaration in Argyle, St Vincent and the Grenadines “for dialogue and peace between Guyana and Venezuela” between President Irfaan Ali of the Cooperative Republic of Guyana and President Nicolas Maduro of the Bolivarian Republic of Venezuela held discussions on matters consequential to the territory in dispute between their two countries. The discussions were facilitated by the Prime Minister of Saint Vincent and the Grenadines and Pro-Tempore President of the Community of Latin American and Caribbean States (CELAC) Prime Minister Ralph E Gonsalves