SBM Offshore contract for EnerMech on ONE GUYANA FPSO

March 4, 2025

SBM Offshore subsidiary, Guyana Deepwater Operations awarded UK-based EnerMech a significant pre-commissioning contract for work on the ONE GUYANA FPSO, a key component of ExxonMobil’s production strategy which further strengthens EnerMech’s presence in the offshore oil and gas industry.

The critical role of pre-commissioning services ensures the efficiency and safety of FPSO operations. EnerMech will deploy its expertise to prepare the FPSO for full operational capability, ensuring that all systems function optimally before production begins.

The integrated solutions specialist has steadily expanded its footprint in Guyana, having previously supported multiple offshore projects where its expertise in pre-commissioning, maintenance and operational support positioned it as a trusted partner for major energy operators.

EnerMech successfully delivered pre-commissioning campaigns for all three FPSOs currently producing in the field: the Liza Destiny, Liza Unity and Prosperity. Recently, EnerMech additionally secured the Gas-to-Energy Pipeline Pre-Commissioning Project which included the Destiny and Unity FPSOs TARs.

The latest FPSO commissioned by Netherlands-based SBM Offshore for ExxonMobil Guyana, ONE GUYANA is a cutting-edge vessel built with advanced technology to support offshore operations by processing and storing oil extracted from the Stabroek Block. It is designed to produce approximately 250,000 barrels of oil per day, with an associated gas treatment capacity of approximately 450 million cubic feet per day and a water injection capacity of approximately 300,000 barrels per day. Spread-moored in water depth of around 1,800 meters, it will have the capacity to store around 2 million barrels of crude oil.

Under the pre-commissioning contract, EnerMech will execute critical operations including offshore risers leak testing, gas injection riser de-watering, umbilical electrical and fiber optic testing and the installation of interconnecting tubing and flushing and testing equipment on the ONE GUYANA FPSO, set to arrive in Guyana this year.

Procedures are designed to mitigate risks and enhance long-term operational performance. ONE GUYANA FPSO is expected to play a crucial role in Guyana’s long-term energy strategy. Its deployment marks another milestone in the rapid rise of a key player in the global oil and gas industry, reinforcing the significance of robust pre-commissioning work.

EnerMech CEO Charles Davison, Jnr. commented: “We are honored to be selected once again by SBM Offshore for such a pivotal project, reinforcing the trust and confidence placed in our solutions orientated strategies and capabilities. This award builds on EnerMech’s extensive experience with the three preceding FPSOs – Liza Destiny, Liza Unity, and Prosperity – demonstrating our commitment to delivering a high-quality service in the region. Our selection for this critical work reflects not only our proven track record but also our unparalleled expertise and rigorous standards we adhere to. We look forward to contributing to the success of the ONE GUYANA FPSO and further supporting the energy ambitions of Guyana.”

VP of Operations in Americas Frazer Thomson revealed: “The ONE GUYANA FPSO pre-commissioning scope of work requires precise execution and deep technical expertise to manage the complex challenges these operations present, and we have consistently delivered successful outcomes for SBM GDO in the region. Our ability to deploy specialised personnel and advanced technology underlines our readiness to handle the demanding environment of deepwater operations.”

EnerMech Guyana Country Manager Darrel Sookdeo said “We are committed to upholding the highest standards of safety and efficiency whilst bolstering our local content, ensuring that the ONE GUYANA FPSO is fully prepared to meet its production targets as it enters the next phase of its journey.”

ExxonMobil green-lighted its fourth project within the Stabroek block, the Yellowtail development, which comprises six drill centers and up to 26 production and 25 injection wells, in April 2022 and followed it up with a contract confirmation with SBM Offshore for the supply of the FPSO One Guyana. With a design incorporating the SBM Fast4Ward program, the FPSO entered drydock in March 2023 at the Keppel yard, which it left for the Seatrium yard in Singapore. In September 2024, SBM Offshore confirmed the move to the integration and commissioning phase.

The IOC plans to have six FPSOs with a gross production capacity of over 1.2 million barrels of oil per day online on the Stabroek block by the end of 2027, with the potential for up to ten FPSOs to develop the estimated gross discovered recoverable resources of over 11 billion barrels of oil equivalent. SBM Offshore is also constructing the FPSO Jaguar for ExxonMobil’s Whiptail oilfield development, its sixth project in the Stabroek block.

 

 

 

 

ExxonMobil seeks environmental permits for eighth project

February 13, 2025

ExxonMobil applied for environmental permits for its eighth project, Longtail, its first venture to generate gas not linked to oil production. A consortium led by Exxon plans to explore another well at its offshore block, according to Exxon Guyana president Alistair Routledge. The consortium, which includes Hess and CNOOC, aims to increase production capacity to more than 1.7 million barrels per day (mbbl/d) by the end of 2029.

This year, Exxon plans to enhance output capacity to 940,000 barrels per day (bpd), up from 616,000bpd in 2024, following upgrades to two floating oil facilities and the arrival of a fourth vessel. The Longtail project is expected to contribute up to 250,000bpd of crude output and one billion cubic feet per day of gas production by 2030. Guyana urged Exxon to boost natural gas production to support power generation, industrialisation and the development of petrochemical and LNG businesses. The consortium recently completed an appraisal of its gas resources, allowing for a more precise calculation of available resources.

Exxon Guyana president Alistair Routledge said “All of that data is now being put back into the geologic models, reservoir models, in order to inform us of what sort of upstream development might be possible.”

This study could align Exxon’s efforts with a large development awarded to Fulcrum LNG, aimed at establishing Guyana’s first liquefied natural gas (LNG) project. However, Exxon has not had recent discussions with Fulcrum LNG.

Guyana’s economy experienced its fifth consecutive year of double-digit growth in 2024, expanding by 43.6% due to increased crude production. Oil output rose 58% from 391,000bpd in the same period.   Exxon is set to commence its fourth project, Yellowtail, upon arrival of a floating production storage and offloading (FPSO) facility from Singapore, constructed by SBM Offshore. Exxon expects to start oil production from its fifth, sixth and seventh projects – Uaru, Whiptail and Hammerhead – between 2026 and 2029.

 

 

Exxon profit sharing and royalty is same as paying tax

Feb 13, 2025

Although Guyana has so far lost over US$10B in corporate taxes as a result of the terms of the 2016 Production Sharing Agreement (PSA), President of ExxonMobil Guyana Limited (EMGL), Alistair Routledge said the country is ultimately receiving taxes through the profit share arrangement and 2% royalty requirements embedded in the deal.

Despite not paying taxes, Exxon boss says profit sharing and royalty is same as giving Guyana tax. He provided this explanation at Exxon’s first quarter (Q1) press conference for 2025, hosted at the company’s Duke Street, Kingston, Georgetown office. Routledge said he believes there is confusion around the use of the word ‘tax’.

“There are different forms of agreements that are used in the oil and gas industry. The one that is being implemented in Guyana is the Petroleum Sharing Agreement so it’s literally a sharing agreement where the investors invest, the government doesn’t have to make any investment up front but it shares in the profit and receives a royalty. In effect, that profit-sharing royalty is tax.

In other systems like whether you are running a different local business, you pay corporate tax – in effect it is the same. It is giving a tax, a revenue to the state. It is remitting revenue to the state…while it is not called tax in the Petroleum Sharing Agreement in effect that’s what it is. It is payments to the state in lieu of there being a tax agreement.”

Routledge pointed out that Guyana has implemented a 25% corporate tax requirement. On the other hand, he highlighted that Guyana receives 52% in profit and royalty. To this end, he reasoned,

“So would you prefer to have 25% income tax or 52% plus of revenues effective tax to the state from the PSA?”

In other jurisdictions, the company is required to pay taxes, with royalty and profit oil payments.

While the company does not pay corporate taxes to the state, Exxon is still subject to pay other taxes under the Petroleum Agreement, such as withholding taxes. According to the Guyana Revenue Authority (GRA), withholding tax is income tax withheld from employees’ wages and paid directly to the Government, by the employer. To this end, Exxon boasted that some GYD$49.5B or approximately US$247.5M in taxes were paid to the GRA in 2023 alone.

Importantly, this representation of the revenues received by Guyana under the 2016 PSA has been rebutted by stakeholders, including Chief Policymaker for the oil and gas sector, Bharrat Jagdeo. Previously, when Exxon erected billboards claiming that Guyana receives 52% of all profits, he said:

“One thing I can agree with Vincent Adams on, is that these billboards that Exxon (is) putting up , is misleading in many ways… Exxon’s billboards are misleading. So, they said Guyana receives 52% of all profits from Stabroek Block, 50% profit share plus 2%, they don’t speak about the 75% here going to cost recovery.”

VP Jagdeo pointed out that presently, 75% of the earnings are deducted to cover cost, with the remaining 25% shared with Guyana. This means that Guyana actually receives 12.5% profit, in addition to its 2% royalty.

 

 

Mega FPSO for ExxonMobil Longtail project

Fabio Palmigiani
South America CorrespondentRio de Janeiro

11 March 2025,

Company plans to produce massive amounts of natural gas from eighth development starting in 2030.   Supermajor ExxonMobil submitted an application for an environmental authorisation to develop the Longtail discovery offshore, the eighth major project in the prolific Stabroek block.

Longtail was discovered in June 2018 after ExxonMobil unlocked approximately 78 metres of high-quality petroliferous sandstone reservoirs a few kilometres southeast of the giant Liza field.
According to a 56-page document submitted to the Environmental Protection Agency (EPA), ExxonMobil plans to install a super-sized floating production, storage and offloading vessel to produce from Longtail.

 

 

 

‘Advantaged areas’ will drive ExxonMobil growth

12 March 2025

The President of ExxonMobil’s upstream division, told CERAWeek by S&P Global energy conference that ExxonMobil is finding better ways to unlock more of its known resources, through a ‘production line’ approach offshore Guyana and improved technology in the Permian basin.

ExxonMobil is still exploring frontier areas, but upstream president Dan Ammann placed more emphasis on the company’s expected growth from multifaceted development and improved technology to extract more of the oil and gas that it has already discovered. Acquisition last year of Pioneer Natural Resources cemented ExxonMobil’s dominant position in the Permian shale basin of the US and it continues to ramp up offshore Guyana operations.

ExxonMobil notched record production in Guyana and the Permian in 2024 and it also sees a competitive advantage in liquefied natural gas, Ammann said at the CERAWeek in Houston, Texas.

 

 

CERAWeek 2025: Oil and gas revenue is fueling a resilient economy, Guyana’s leader says

Ivy Diaz, Digital Editor at World Oil March 11, 2025

Day two of CERAWeek by S&P Global held energetic discussions, with key themes surrounding innovation, energy security, and the global forces shaping the industry. Discussion between S&P Global Vice Chairman Daniel Yergin and President H.E. Dr. Mohamed Irfaan Ali, shed light on what fueled Guyana’s rapid economic growth and what’s to come.

The powerhouse of oil and gas development holds keen interest for the global energy sector, an enthusiasm that was apparent by the full ballroom of delegates eager to hear direct insights from the country’s leader. Yergin enlightened a brief history on oil development in Guyana, noting that first discovery was just shy of a decade ago in 2015, with first production coming in 2019. Today, Guyana produces 500,000 barrels per day (bpd) and is on a fast track to increase production to 1.5 million bpd in two years’ time.

President Ali showed humility and confidence in Guyana’s growth story, noting the importance of infrastructure investment, and the broader goal of establishing resilience for Guyana’s economy.

“You can’t have investment without resources. And you can’t have resources without exploring the natural reserves that you have. This has allowed us to develop Guyana through economic diversification and with resilience at the center.

We want to be an energy hub. A stable force that offers energy security, stability and ultimately political stability as well.”

Investing in necessary infrastructure to enable the private sector was critical for Guyana’s successful expansion into the oil and gas sector.

“One thing we knew from first starting oil development was that this was a very complex industry. Our private sector was new to all this, and we did not have the scale to participate without first heavily investing in infrastructure.”

Discussion of infrastructure then segued into S&P Vice Chairman Yergin prompting President Ali to share Guyana’s progress on bringing natural gas onshore for electric generation—a topic Ali was eager to discuss.

While cost will remain an inhibiting factor, Guyana is pursuing opportunities to turn this to their competitive advantage, referencing the highly anticipated Gas-to-Energy project. A collaborative development between the government and ExxonMobil, the Gas-to-Energy project will consist of a 12-inch pipeline with a maximum capacity of 120 MMcf/d, and is designed to transport gas from Exxon’s offshore operations in the Stabroek block to onshore facilities for power generation.

The project is slated to begin operations in 2025, with an initial capacity of 50 MMcf/d. Progress has been made to establish a cooperative, collaborative regional ‘energy corridor’ between Guyana, Suriname and Brazil.  They are specifically hoping to developing a facility to connect Suriname to northern Brazil in order to facilitate an integrated regional energy hub.

Talk of large-scale data hub development was prominent across CERAWeek’s day-two sessions, and President Ali iterated that Guyana is pursuing this avenue as well. “We’re striving to be a major player on the technical frontier and we are working on using natural gas to generate power to drive large-scale data centers.”

Ali does not shy away from the truth that oil and gas developments have been the main catalyst for propelling Guyana forward, although he made the distinction that there are a wide array of economic strengths and goals in sight.

“We want to be known as an economy that was propelled by revenue from oil and gas projects, but also an economy that is resilient and highly integrated. In the next three to four years, we’ll have perhaps two of the largest oil operators in Guyana. A lot of opportunities will be unlocked.”

Put Guyana on your radar

Robert Stewart
North America Energy CorrespondentHouston

Published 12 March 2025, 12:05

Mohamed Irfaan Ali: ‘Every news so far has been positive’ coming out of Stabroek fields.

Thanks to soaring output from ExxonMobil’s prolific offshore Stabroek block, Guyana has become one of the darlings of the oil and gas world over the last decade. However, though thankful for the economic benefits that production has brought to his country, Guyana President, Mohamed Irfaan Ali, on Tuesday had a message for investors and executives at the CERAWeek by S&P Global energy conference in Houston, US.

“Our story in Guyana is much larger than oil and gas. Oil and gas is a catalyst for many other opportunities for development in the country. I want you to put Guyana on your radar.

There are a lot more blocks that will go up for auction. We are also looking at the government-to-government collaboration and all the other spin-offs that come from the industry. But because of our vast natural resources, there are many other opportunities.

And tourism, a tremendous opportunity. If you’re looking to diversify your own business portfolio, Guyana is the place that you must be.”

To be clear, Ali is thrilled with booming production,  proven to be a pot of gold for Guyana and for Stabroek operator ExxonMobil and partners Hess and CNOOC International.

ExxonMobil is projecting its Guyana oil production will swell to 1.7 million barrels per day of by 2030. It is already working on an eighth floating production, storage and offloading vessel for Stabroek.

Ali  hopes the growth continues “long beyond that. The positive news is that every news so far has been positive. And we are hoping that this trend will continue and our reserves will continue to grow.”

Guyana in a short period of time had to enhance its regulatory framework and local private sector involvement to handle the surge in oil and gas development.

“What we found is that the private sector embraced this with the policy backing, with the backing of legislation, and then that also incentivised the foreign companies to include the private sector in their growth story. So you had many joint ventures created,faster transfer of technology and knowledge and today we have a lot more of the services from the sector being carried out by the local private sector or in joint ventures with foreign investors.”

Guyana is working on a proposal to ship crude to the US for refining. Ali hopes the end products could be sold back to Guyana at discounted prices.

“A proposal is under discussion now. There are negotiations taking place and discussions around that,” Ali said without divulging details.

 

 

 

 

Exxon to Boost Gas Production, Explore Export Options

Production capacity in Guyana is expected to surpass 1.7 MMbbl/d, with gross production growing to 1.3 MMbbl/d by 2030.

Hart Energy Staff
02/21/2025

Exxon said it plans to make a final investment decision on Longtail next year and for the project to go online by 2029.

New seismic study to improve ExxonMobil offshore reservoir management

24 Feb 2025 Vladimir Afanasiev
European Correspondent

Published 24 February 2025, 12:22

US supermajor in full swing in offshore development drilling and construction at prolific Stabroek block.

ExxonMobil contracted Norwegian seismic acquisition player Shearwater GeoServices to acquire a 4D survey offshore Guyana, where the supermajor is developing the large Stabroek block. Shearwater said it would start a six-month 4D ocean bottom node survey for ExxonMobil Guyana in the first half of 2025, using its seismic vessel as a source and a dual remotely operated vessels for the node deployment.

ExxonMobil is currently engaged in development drilling to commercialise the vast hydrocarbon reserves it discovered on the Stabroek block.

Incorporating a time lapse of a series of traditional 3D seismic studies, 4D seismic surveying portrays changes in geophysical reservoirs. The 4D survey would help improve ExxonMobil’s understanding of the properties and behaviour of offshore hydrocarbon reservoirs during the extraction process.

“Shearwater is pleased to be selected for this significant contract in one of the world’s fastest growing offshore oil and gas regions, following our recent successful completion of 4D towed streamer operations for ExxonMobil in Canada,” said Shearwater chief executive Irene Waage Basili.

4D technology has predominantly been used to optimise reservoir drainage, the placement of additional wells and also to improve reservoir development certainty. It also reveals reservoir pressure changes and the movement of oil and gas inside it as hydrocarbons are produced.

 

 

 

 

ExxonMobil applies for seventh major offshore project

18 February 2025

In 2021, ExxonMobil contracted Norway’s PGS, which last year merged with compatriot TGS, for a 4D seismic assignment in Guyana.   According to ExxonMobil, it is simultaneously advancing plans for five additional development projects in the country to come on stream by the end of the decade. Production capacity in Guyana is expected to surpass 1.7 million barrels per day of oil, with gross output increasing to 1.3 million bpd by 2030.

According to Guyana’s Maritime Administration Department, the US supermajor is currently drilling at the $12.7 billion Uaru field development, which is targeting first production in 2026, using Noble Drilling‘s drillships Sam Croft and Bob Douglas, and Stena Drilling’s Stena Carron.

Meanwhile, Noble vessels Tom Madden and Don Tayler are also drilling within the Stabroek block, according to recent maritime notices from the department.

ExxonMobil is also continuing offshore installation activities on the Yellowtail field within the Stabroek block using Saipem’s pipelay, heavy lift and construction vessel Constellation, the department said.

Exploration results in Guyana have led to more than 30 discoveries in the ExxonMobil-operated Stabroek block since 2015. The US company has already identified the presence of multiple reservoirs with an estimated recoverable resource of nearly 11 billion barrels of oil equivalent.

ExxonMobil operates the Stabroek block with a 45% stake and is partnered by US independent Hess on 30% and China’s CNOOC International on 25%. It is currently producing about 655,000 bpd from the block with three floating production, storage and offloading vessels — Liza Destiny, Liza Unity and Prosperity — located at the Liza and Payara fields.

(Copyright)

 

 

 

 

 

ExxonMobil lets reservoir surveillance contract

Feb. 24, 2025

ExxonMobil Guyana let a deepwater 4D ocean bottom node reservoir surveillance program to Shearwater Geoservices AS.

Alex Procyk

ExxonMobil Guyana let a deepwater 4D ocean bottom node (OBN) reservoir surveillance program to Shearwater Geoservices AS. Under the award, Shearwater will begin a 6-month survey starting in first-half 2025. The field unit will comprise a Shearwater seismic vessel as source vessel and a dual ROV vessel for node deployment. OBN surveillance monitors reservoir extraction, identifies missed hydrocarbons and aids in well placement.

 

 

 

Buoyant Oil Exports Find Eager Buyers In Europe

Gaurav Sharma, Senior Contributor, London-based analyst of energy & ESG.

March 12, 2025,

Guyana’s oil continues to find eager buyers in Europe as global crude markets factor in the phenomenal output increase it achieved in recent years.The micro-state in Latin America with a population of a million people, is in the midst of a full-blown oil production boom. It is now considered to be one of the industry’s most promising investment frontiers.

Headline crude production came in at less than 100,000 barrels per day as recently as 2020 but it grew nearly four-fold to 383,000 bpd in 2023 and subsequently nearly doubled to average 600,000 bpd last year, according to the Ministry of Natural Resources.

Production is expected to climb to nearly 940,000 bpd in 2025 and more may be expected according to ExxonMobil. The oil major at the heart of the uptick in Guyana, expects its production capacity to surpass 1.7 million bpd, with gross production growing to 1.3 million bpd, by 2030. No wonder the Europeans want in.

According to Reuters, 66% of Guyana’s oil was shipped to Europe in 2024, up from 62% in 2023. This growth trajectory is expected to be maintained if not exceeded, according to officials at CERAWeek by S&P Global, a major energy conference in Houston, U.S.

Addressing the event, Irfaan Ali, President of Guyana, said: “Extraordinary things that we have achieved were down to the power of extraordinary partnerships and persisting with our plans for exploration and production. These will continue and we expect [near-term] production to rise further.”

For the Europeans, it seems that “further” bit cannot morph into “faster” soon enough given Guyana’s sweet, light crude oil composition suits them. It implies a lower sulfur content (~0.5% or below) and low density (high API gravity, typically greater than 30° API), resulting in a relatively higher proportion of lighter hydrocarbon yield.

The continent’s refiners have been increasingly taking up Guyana’s crude grades, Liza, Unity Gold, and Payara Gold — the composition of which is sweeter and lighter compared to other Latin American crudes from Mexico or Colombia.

Guyana, which exported its first crude oil cargo towards the end of 2019, is now the fifth biggest exporter in Latin America, after Brazil, Mexico, Venezuela and Colombia.

That’s as ExxonMobil and partners Hess Corp and CNOOC, continue to improve production from the offshore Stabroek Block. The oil play is among the most promising in the world where over 11 billion oil-equivalent barrels have been discovered to date.

Guyana officials have promised ease of market access to buyers and sellers alike and are expanding their global trading partnerships with major markets including India and the U.S. The country is also seek partners to crack or process its crude as it currently does not have any refineries.

President Ali is considering a plan to export crude oil to the US for refining,and to bring back the fuel for domestic consumption and possible sale to nearby countries. Guyana is also in discussions with companies to build its own refineries and has proposed a project to build one in the nearby Dominican Republic.

 

 

 

IMF in Guyana for Article IV consultation

March 6, 2025

Minister of Parliamentary Affairs and Governance, Gail Teixeira met an International Monetary Fund’s (IMF) team conducting the Fund’s annual Article IV process. The IMF monitors member countries’ economic and financial policies, provides policy advice and identifies potential risks and recommends policy adjustments. Consultations cover a range of issues, including fiscal policy, financial policies, foreign exchange, monetary policy, and structural policies.

The Article IV process, which results in the publication of a report on the State’s progress, is part of Guyana’s anti-corruption architecture at the international level. In its December 2023 Article IV Consultation report, the IMF had commended the Government of Guyana for economic management, including implementation of policies and initiatives geared at transforming Guyana’s economy. The findings were published following an official IMF mission visit to Guyana in September of that year.

The IMF had noted that in relation to inflationary pressures, government had introduced a suite of measures in 2022 and 2023, which contributed to a decline in the inflation rate in 2023. The Fund reported that government’s current expansionary fiscal policy stance is appropriate, given the development needs and is appropriately balanced by monetary policy.

While the economy tripled in size since the start of oil production, fundamentals remain sound and there are no signs of inflationary pressures. The IMF had in December of 2023 advised the government to establish a precautionary stabilization fund in the medium to long term as a hedge against shocks.

 

 

 

IMF hails cash transfers, strengthened governance of NRF

7 March 2025

The International Monetary Fund (IMF) praised Guyana’s cash transfers, which helped to tackle poverty but cautioned the likely impact from lower oil prices and climate shocks.

“Staff assesses that social transfer policies implemented in recent years have increased disposable income and reduced the poverty rate. Staff assesses that social transfer policies implemented in recent years have increased disposable income and reduced the poverty rate,” the IMF said in its Staff Concluding Statement of the 2025 Article IV Mission.

Unofficial estimates put Guyana’s poverty rate at 38.8%. The transfers are being provided to, among others, disabled persons, farmers, school children, mothers of newborn babies and dialysis recipients. Government is currently distributing a GY$100,000 cash transfer to all Guyanese 18 years and older as of January 1, 2025.

The IMF mission, which met top officials, representatives from the private sector, banks, labor unions, the opposition and other stakeholders, said if more transfers are provided, Guyana would be able to further address poverty.

“Going forward, additional targeted transfers, integrated into a medium-term fiscal framework, could further support inclusive growth and help Guyana advance faster toward its sustainable development goal (SDG) of no poverty.”

The IMF staff team, led by Ms. Alina Carare and Ms. Lusine Lusinyan, who held discussions virtually and in Georgetown for the 2025 Article IV Consultation during February 24–March 7, 2025, singled out improved governance of the Natural Resources Fund (NRF) into which are paid oil revenues.“The authorities have advanced in enhancing governance of the NRF and modernizing public sector operations.”

The 2023 NRF and Public Accountability and Oversight Committee Annual Reports have been presented to the National Assembly, regular notifications of receipts of petroleum revenues, as mandated by law, are published in the Official Gazette and presented to the National Assembly, and the Bank of Guyana publishes monthly and quarterly reports of the NRF’s financial performance, the Fund said.

The opposition representative on the NRF’s Investment Committee, Dr Terrence Campbell recently filed a High Court case seeking several reliefs hinged on his concerns that transfers to the Consolidated Fund were not related to proposed expenditures. Government has said that the oil revenues were being mixed in with revenues from other sources.

The IMF forecasts that Guyana’s economy is expected to grow on average 14% per year over the next five years, driven by robust oil production amid a growing share of the non-oil sector. Non-oil GDP is projected to expand on average by about 6¾% per year. Risks to the outlook are broadly balanced. On the upside, further oil discoveries and productivity-enhancing investments, including to strengthen energy resilience would further bolster economic prospects.

Downside risks stem from overheating pressures which, if not contained, could lead to higher inflation and real exchange rate appreciation beyond the level consistent with a balanced expansion of the economy. Commodity price volatility in a highly uncertain global environment and climate shocks could also adversely affect inflation and alter the macroeconomic outlook, the global financial institution said.

For Guyana’s economic outlook, real GDP and real non-oil GDP are projected to grow by about 10¼% and 13% in 2025, respectively. Inflation is expected to edge up to around 4% by the end of 2025 from close to 3% at the close of 2024. Following a strong fiscal impulse in 2024, the budget deficit is expected to narrow from 7.3% of GDP to just below 5% of GDP in 2025, as higher oil revenues more than offset the projected increase in spending. The large current account surplus of 24½% of GDP in 2024 is projected to moderate to about 9% of GDP in 2025 reflecting the imports of the fourth oil floating production storage and offloading (FPSO) vessel.

 

 

 

Guyana: Staff Concluding Statement of the 2025 Article IV Mission

March 7, 2025

A Concluding Statement describes the preliminary findings of IMF staff at the end of an official staff visit (or ‘mission’), in most cases to a member country. Missions are undertaken as part of regular (usually annual) consultations under Article IV of the IMF’s Articles of Agreement, in the context of a request to use IMF resources (borrow from the IMF), as part of discussions of staff monitored programs, or as part of other staff monitoring of economic developments.

The authorities have consented to the publication of this statement. The views expressed in this statement are those of the IMF staff and do not necessarily represent the views of the IMF’s Executive Board. Based on the preliminary findings of this mission, staff will prepare a report that, subject to management approval, will be presented to the IMF Executive Board for discussion and decision.

Washington, DC:

An International Monetary Fund (IMF) staff team, led by Ms. Alina Carare and Ms. Lusine Lusinyan, held discussions virtually and in Georgetown for the 2025 Article IV Consultation during February 24–March 7, 2025. The team met Vice-President Dr. Bharrat Jagdeo, Finance Minister Dr. Ashni Singh, Minister of Parliamentary Affairs and Governance Gail Teixeira, Central Bank Governor Dr. Gobind Ganga, other senior officials, representatives from the private sector, banks, labor unions, and other stakeholders. At the conclusion of the visit, Ms. Carare and Ms. Lusinyan issued the following statement:

Guyana’s economic transformation is advancing at a strong pace and broadening in scale. Rapidly expanding oil production, strong non-oil output, and large-scale public infrastructure investment supported the highest real GDP growth rate in the world, at a recorded average of 47 percent in 2022–24. The non-oil economy continues to reflect a solid broad-based performance across sectors, especially construction and services. Real GDP and real non-oil GDP are projected to grow by about 10¼ percent and 13 percent in 2025, respectively. Inflation is expected to edge up to around 4 percent by end-2025 from close to 3 percent in end-2024. Following a strong fiscal impulse in 2024, the budget deficit is expected to narrow from 7.3 percent of GDP to just below 5 percent of GDP in 2025, as higher oil revenues more than offset the projected increase in spending. The large current account surplus of 24½ percent of GDP in 2024 is projected to moderate to about 9 percent of GDP in 2025 reflecting the imports of the fourth oil Floating Production Storage and Offloading (FPSO) vessel.

The medium-term economic outlook remains highly favorable with balanced risks. The economy is expected to grow on average 14 percent per year over the next five years, driven by robust oil production amid a growing share of the non-oil sector. Non-oil GDP is projected to expand on average by about 6¾ percent per year. Risks to the outlook are broadly balanced. On the upside, further oil discoveries and productivity-enhancing investments, including to strengthen energy resilience would further bolster Guyana’s economic prospects. Downside risks stem from overheating pressures which, if not contained, could lead to higher inflation and real exchange rate appreciation beyond the level consistent with a balanced expansion of the economy. Commodity price volatility in a highly uncertain global environment and climate shocks could also adversely affect inflation and alter the macroeconomic outlook.

Staff commends the authorities’ continued commitment to maintaining macroeconomic stability, ensuring fiscal sustainability, and fostering inclusive growth. While there are no clear signs of overheating, enhancing the close monitoring of macroeconomic developments and continuing to proactively respond through tighter policies would be essential to ensure that the economy avoids overheating and remains on a balanced expansion path. Staff assesses that social transfer policies implemented in recent years have increased disposable income and reduced the poverty rate. Going forward, additional targeted transfers, integrated into a medium-term fiscal framework, could further support inclusive growth and help Guyana advance faster toward its sustainable development goal (SDG) of no poverty.

Given Guyana’s development and investment needs, the fiscal policy stance is appropriate at this stage, and the fiscal deficits should gradually close over the medium term. The increase in the withdrawal ceiling from the Natural Resource Fund (NRF) in early 2024 provided room for a substantial expansion of capital expenditure, which reached over 12½ percent of GDP in 2024. Staff recommends gradually closing the overall fiscal deficit by 2031, followed by a narrowing of the non-oil primary deficit over the (conservatively) projected lifespan of oil reserves to the levels consistent with ensuring intergenerational equity and preserving fiscal and macroeconomic sustainability. Implementing a comprehensive medium-term fiscal framework with an explicit anchor and an operational target, further modernizing public financial management systems, and conducting regular expenditure reviews to continually assess spending efficiency and effectiveness in reaching the SDGs will also help further strengthen fiscal discipline and transparency.

Monetary policy remains appropriately tight, helping contain inflation. Maintaining broad money growth in line with non-oil GDP growth, continuing to carefully manage liquidity in the banking system, and tightening monetary policy further, if signs of overheating or imbalances emerge, remain key to guarding against inflationary pressures. Enhancing the monetary policy toolkit, including through strengthening the interest rate channel, reducing excess liquidity where needed, and taking steps toward deepening financial markets would help strengthen the effectiveness of monetary policy transmission. Maintaining consistent policies will continue supporting the current stabilized exchange rate regime, which remains appropriate. As Guyana’s economy continues to transform, a reassessment of the exchange rate framework could be beneficial in the medium term.

There is scope to strengthen the macroprudential framework to help effectively respond to potential shocks to financial stability. The current macroprudential framework could be enhanced to link it to the real-time supervisory framework, and staff welcomes the Bank of Guyana’s interest to engage with the IMF on technical assistance to develop macroprudential tools. Improving data collection and statistics on corporate and household balance sheets and real estate prices will be critical to support strengthening banking supervision and the move towards broad-based risk-based financial supervision.

The authorities have advanced in enhancing governance of the NRF and modernizing public sector operations. The 2023 NRF and Public Accountability and Oversight Committee Annual Reports have been presented to the National Assembly, regular notifications of receipts of petroleum revenues, as mandated by law, are published in the Official Gazette and presented to the National Assembly, and the Bank of Guyana publishes monthly and quarterly reports of the NRF’s financial performance. The authorities have also made good progress in modernizing their revenue administration capacity. The procurement framework is being upgraded, improving public access to information about procurement opportunities and processes and building capacity among public officials. As part of broader digitalization efforts in public sector service delivery, work is ongoing to introduce e-procurement.

Staff supports Guyana’s continued efforts to strengthen its AML/CFT and anti-corruption frameworks in line with its international commitments. Guyana’s Mutual Evaluation Report by the Caribbean Financial Action Task Force (CFATF), published in 2024, found a significant improvement in Guyana’s efforts to improve its understanding of ML/FT risks via the conduct of multiple ML/FT risk assessments, including a 2023 sectoral risk assessment on the Extractive Industries. The 2024 Sixth Round of Review of the Mechanism for Follow-up on the Implementation of the Inter-American Convention against Corruption (MESICIC) from the Organization of American States also acknowledges Guyana’s progress, and the authorities are working to strengthen the Integrity Commission, particularly the compliance framework for the submission of declarations.

Continued implementation of reforms will further strengthen fiscal transparency and anti-corruption frameworks, including in extractive industries. Internal audit capabilities are expanding, and more effort is needed to ensure a timely publication of audit reports of some public companies and local authorities. In line with the recommendations of the MESICIC 2024 report, work is ongoing in multiple areas to strengthen anti-corruption efforts. Following the Extractive Industries Transparency Initiative (EITI) report published in 2024, the authorities are working to implement the beneficial ownership transparency recommendation in line with the EITI standards. There is also scope to strengthen regulatory compliance in the non-oil mining sector, particularly with large-scale operators. Staff supports the authorities’ strong efforts to strengthen the rule of law through hiring more magistrates and judges.

Guyana remains a global pioneer in climate policies monetizing forest conservation and the authorities are enhancing the energy matrix, strengthening macroeconomic resilience. Against climate change vulnerabilities stemming from sea level rise and flooding, the authorities are working to prioritize actions as outlined in Guyana’s Low Carbon Development Strategy 2030 to build resilience, further promote sustainable forestry, and enhance biodiversity conservation. The Gas-to-Energy project is expected to secure reliable electricity provision countrywide as a transition toward a cleaner and more renewable energy mix over the longer term.

Staff supports the authorities’ efforts to foster inclusive growth, economic diversification, and upgrading of labor skills. Addressing labor shortages and skill mismatches through training and vocational education is key to supporting the ongoing economic expansion and increasing women participation in the labor markets. Staff commends the authorities for reforms and investments to boost productivity, trade connectivity, and export diversification, including through high value-added products in agriculture and manufacturing.

Staff welcomes the authorities’ ongoing efforts to modernize official statistics and offered further support through capacity development. In this context, further enhancements to the national accounts and price statistics to capture the rapidly evolving economy remain a key priority. The updated household budget survey, planned to be finalized by 2027, and regular labor force surveys will also help shape and refine government policies.

The mission would like to thank the authorities of Guyana and all other counterparts for the constructive and candid policy dialogue, productive collaboration, and warm hospitality.

 

 

 

 

Transforming Guyana: gains from infrastructure boom

March 6, 2025

Vice President Bharrat Jagdeo told media that the series of innovative infrastructure projects under construction will drive economic growth, increase income, provide employment and enhance social welfare. He highlighted how the government’s ambitious infrastructure plan will not only modernise the country but also boost its Gross Domestic Product (GDP), and improve the quality of life across the country.

“Several projects would have a different impact on output, that is GDP revenue and income, revenue to the state and then income to people.”

An example is the new Demerara River Bridge, expected to come on-stream later this year. This bridge, when completed, would have a massive impact on GDP, investment opportunities and, as a result, income. There will be more economic opportunities.

“… before, if you build a wharf over in region three or say a fuel depot and you had to move a large truck laden with fuel or a container back across the floating bridge it would be nearly impossible to do so and do it on a continuous basis. With that bridge now, that changes the entire dynamics.”

The fact that the bridge will be toll free and will not retract will also positively impact on the lives of citizens. The new Demerara River Bridge, being constructed by China Railway Construction International Limited under the supervision of the Italian firm Politecnica, is set to become Guyana’s largest public infrastructure project. The US$260 million contract for the bridge was signed in May 2022.

Spanning approximately 2.65 kilometres with a driving surface width of around 23.6 metres, the bridge will feature two carriageways and four lanes. Its design includes a cable-stay structure for the high span, expected to have a vertical clearance of approximately 50 metres above the mean highest watermark. The bridge will incorporate cycling lanes and other amenities, ensuring a modern and efficient crossing for motorists and cyclists.

The highly anticipated Gas-to-Energy project will further add to the economic and social benefits for all when a 200-kilometre pipeline brings gas from the Liza Destiny and the Liza Unity Floating Production fields onshore. On arrival at this West Bank Demerara facility, the pipeline will continue for approximately 25 kilometres to the Natural Gas Liquid (NGL) plant to be constructed in Wales. The GtE project, once completed, will have a significant impact on the economy, attracting sustainable investments across various sectors and creating numerous job opportunities.

Modernisation of the healthcare sector was also highlighted by the Vice President.

“That’s part of our social commitment to people. Might generate some jobs, if it’s consistent with our commitment to ensuret every Guyanese would have world class health care, wherever you live.”

Of the 12 upcoming hospitals, six will be replacement facilities. A new hospital is being constructed in Region Six, . The objective of this project is to replace the existing Skeldon Hospital and enhance the range of services available to the community. Construction of new hospitals at Anna Regina, Region Two; De Kinderen, Region Three; Diamond and Enmore, Region Four; Bath, Region Five, and Skeldon Region Six, is in progress.

 

 

 

 

SBM Offshore Guyana

February 25, 2025

SBM Offshore Guyana hosted another edition of its ‘Let’s Talk Local Content’ forum at the Guyana Energy Conference and Supply Chain Expo on February 21. The company was proud to be the corporate local content partner for the annual event.

The seminar saw the participation of local vendors and organisations which provided a platform for meaningful discussions about the company’s procurement process, key vendor requirements, compliance guidelines, and local content initiatives. The forum enabled one-on-one interactions between suppliers and company representatives from core departments, including supply chain, compliance, local content and HSSE.

The event featured two break-out sessions. One focused on providing key insights into the company’s procurement process and targeted new and potential suppliers while providing commercial and technical insights into the procurement process.

The second session highlighted procurement needs for Brownfield projects, Engineering, Procurement, and Construction (EPC) projects and insights into spare parts needs along with the specifications for the parts purchased with maintenance requirements by the company and was targeted at existing suppliers and suppliers wishing to enhance their offerings to meet the growing sector needs. A Floating Production Storage and Offloading (FPSO) vessel Immersive experience session was held, utilizing innovative technology that provided an in-depth view of the FPSO. A model of the Liza Unity FPSO was on display.

SBM Offshore Guyana’s General Manager, Martin Cheong, said, “We remain committed to collaborating closely with local suppliers. This is accomplished through a number of initiatives and activities such as this forum, where local suppliers are updated on our procurement process and given an opportunity to have their questions answered.”

Director of the Local Content Secretariat, Dr. Martin Pertab, underscored the need for local content development and partnerships. The Secretariat also took the opportunity to launch the Local Content App, a digital tool designed to improve access to opportunities in Guyana’s oil and gas sector. He also described the app as a solution to persistent challenges in the sector.

“In the past, companies relied on our website and social media to find opportunities. However, algorithms can limit visibility, and businesses have to constantly monitor these platforms.”

As part of the engagement an informational exchange with the General Manager and Sustainability Lead, Gwenetta Fordyce underscored the importance of sustainable development and the company’s unwavering commitment to building out a business that is impactful in areas beyond the oil and gas sector in Guyana. In their exchange with the participants, the duo highlighted the work being done with the National Coordinating Coalition (NCC), Vurlon Mills Football Academy (VMFA), and the Green Farms Initiative which supports Plympton Farm. These initiatives support the drive to build local capacity both from a human capital and supply chain perspective.

Local content development remains a key pillar in SBM Offshore Guyana operations. The company has been building local capacity and supporting initiatives that enhance the development of communities.

Exxon Mobil plans to increase natural gas production in Guyana and is considering options to export it to global markets, a company executive said at the Guyana Energy Conference in Georgetown, Bloomberg News reported Feb. 19.

 

 

Women break barriers

February 22, 2025

 

Women are making significant strides in leadership, business and traditionally male-dominated fields, with government-led initiatives paving the way for greater inclusion and empowerment.

At the Guyana Energy Conference and Supply Chain Expo in Georgetown, a panel of accomplished women leaders highlighted the progress to expand opportunities for women in education, business and housing.The panel featured Sonia Parag, Minister of Local Government and Regional Development; Susan Rodrigues, Minister within the Ministry of Housing and Water; Sharlene Seegoolam, Managing Director for Guyana, Trinidad, and the Caribbean at SLB and Hayley Gilbert, Supply Chain Manager at ExxonMobil Guyana. Moderated by Dr. Pradeepa Bholanath, Senior Director for Climate and REDD+, the discussion revolved around creating equitable opportunities for women and ensuring their access to resources that facilitate growth and prosperity.

Minister Rodrigues emphasised the importance of addressing challenges to equitable energy transition and resource distribution. She underscored the need for an intersectional approach to ensure all sections of society—including marginalised communities, women, and youth—benefit from wealth and development.

As part of the government’s effort to create spaces where women feel safe and empowered, Minister Rodrigues highlighted the Women’s Safety Audit workshop, a collaborative initiative with the Inter-American Development Bank (IDB). The programme engages women in discussions on infrastructure development, to voice their concerns and suggest improvements, such as better street lighting and increased police presence, to enhance community safety. Further reinforcing women’s empowerment, she pointed to the remarkable growth of women contractors in housing and public works sectors over the past four years.

“I can say, without fear of contradiction, that Guyana has one of the most outstanding housing programmes anywhere in the world. There is no other country in the world that has a housing programme as extensive and transformational as the one we have in Guyana.”

One of the most significant milestones achieved has been the allocation of land to 18,000 single women, allowing them to become homeowners at an early stage . Minister Rodrigues described that as a deliberate effort to ensure economic security and empowerment for women and young people.

Minister Parag spoke about the opportunities for women in leadership roles, both on a macro and micro scale. Government programmes, including small business grants and scholarships, have played a pivotal role in enabling women, even in remote communities, to achieve financial independence and career advancement.

Gilbert echoed similar sentiments, emphasising the inroads women made in male-dominated industries. A significant percentage of Guyana’s oil and gas workforce comprises women, testimony to the shifting landscape of professional opportunities.

Seegoolam added that women are not only gaining ground in energy and engineering but also in procurement and mining.These advancements indicate a broader trend of diversification in traditionally male-dominated sectors.

The conversation at the Guyana Energy Conference and Supply Chain Expo showcased the tangible steps being taken to promote gender equality and inclusivity. With continued efforts in education, housing, business development, and workforce inclusion, women are positioned to play an even greater role in shaping Guyana’s future.

As panellists emphasised, the key to sustaining this progress lies in persistence, support, and a commitment to ensuring that all women have the opportunities and resources necessary to thrive in Guyana’s rapidly evolving economic landscape.

 

 

 

 

Afreximbank Champions Partnership

February 22, 2025

Professor Benedict Oramah, President and Chairman of the Board of the African Export-Import Bank (Afreximbank), addressed the Guyana Energy Conference and Supply Chain Expo (February 18-21), stressing the crucial role of enhanced co-operation between the African and Caribbean regions in the oil and gas industry.

He announced a $1 billion oil service financing facility to support Guyana’s local content development while fostering collaboration with African oil service companies. Professor Oramah highlighted the readiness of skilled oil service companies from Ghana, Egypt, and South Africa to work alongside Guyanese enterprises.

“These companies are ready and willing to support Guyanese… And of course, Afreximbank is there to underwrite the marriage,” he stated, reinforcing the Bank’s commitment to enabling strategic partnerships that benefit both regions.

The financing facility will be deployed either directly to qualifying corporate clients or through a factoring line via local banks. This mechanism aims to ensure Guyanese contractors have the financial backing needed to thrive in the burgeoning oil service industry.

Oramah stressed the significance of retaining oil sector revenues within Guyana. He noted that the oil service sector could be worth between $5 to $8 billion annually but warned that much of it would be lost to foreign companies if local businesses were not adequately positioned.

“Retaining even 50 per cent of these revenues within Guyana would increase GDP by 29 per cent to 47 per cent,” he explained, emphasising the need for strong local content policies that empower entrepreneurs.

Beyond oil, Professor Oramah urged Guyana to mitigate the risks associated with an over-reliance on crude revenues. He recommended securing long-term off-take contracts with oil service companies to ensure stable market access and price security. He also cautioned against the ‘Dutch Disease,’ drawing from Afreximbank’s three decades of experience financing oil and gas activities across Africa.

“These measures are necessary if Guyana and other new entrants in the Caribbean and Africa are to avoid the painful Dutch Disease. We have witnessed oil-dependent economies transform for better or worse through the years. The difference lies in the policy choices made by leaders.”

Afreximbank’s announcement signals a new era of collaboration between Africa and the Caribbean, ensuring that Guyana’s oil boom translates into sustainable economic growth and local empowerment through strategic partnerships and financial support.

 

 

Local, US companies strengthen power grid

Feb 22, 2025

Guyana Electric has teamed up with U.S. based company, GE Vernova, to strengthen Guyana’s electrical grid and provide training opportunities to contractors. The partnership, described as “strategic”, was announced by GE Vernova Representative, Douglas Hasbun and co-owners of Guyana Electric, Keon Howard and Michelle Howard on the sidelines of the Guyana Energy Conference and Supply Chain Expo on Thursday.

Michelle Howard told reporters that the company is 51 percent owned by Guyanese while the remaining 49 per cent is owned by the American company. Howard, called on women to venture into male dominated spaces and take risks. She hopes that her story would serve as an example to all women.

Similarly, her husband Keon said that Guyana Electric is in the habit of hiring female electricians.

“I find most of them work better than the male electricians. They clean up after themselves. So, we try to hire female electricians. They’re easy to work with. They listen more.”

The company takes pride in hiring unskilled persons who desire to learn on the job. They are trained and given an equal opportunity to shine.

“These are people that … don’t even know what a switch connection looks like. So those are some of the things that we try to do.”

, Douglas Hasburn, the representative of GE Vernova explained that the joint venture will be in discussions with the Guyana Power and Light Incorporated (GPL) to participate in some of the projects.

“So, we are also working with some EPC that already have contracts with GPL. We are providing our solutions to those EPC contractors, and where some of them have already established conversations about contracts for deploying of equipment, like power transformers, circuit breakers, capacitors banks, protection and control and automation devices.”

The companies will train and provide support to the technical staff of GPL and other contractors working on the deployment of equipment for Guyana’s power grid.