6.250
%
Neutral
71
mm boe
0
%
The recent successes in Suriname and Guyana, in particular, have meant that this region remains at the top of peoples’ agendas. With the significant gestation period experienced in this region, there is perhaps more excitement than would otherwise be expected because of the significant amount of shared data that already exists among participants.
March 6, 2024
Americas - South
mm bbl
bcf
Northern South America, bordering the North Atlantic Ocean, between Suriname and Venezuela.
PSC/PSA
Guyana has a relatively simple form of Production Sharing Contract ("PSC") fiscal regime. Cost recovery ceilings and profit oil splits are fixed. Royalty and corporate income tax are paid on the contractors behalf by the government. No bonuses, rentals or fees are payable.
With the advent of first oil, the Guyanese economy is poised to become one of the best performing economies in the Western Hemisphere with an optimistic projected GDP growth rate in 2020 exceeding 50%. In response to COVID-19, the Bank of Guyana anticipated a 10% contraction in non-oil sectors for 2020. Guyana’s economy is driven primarily by commodities such as gold, bauxite, rice, and sugar. The United States was Guyana’s largest trading partner in 2019. Guyana’s medium-term prospects remain positive with the discovery of vast oil reserves in Guyana’s waters that will provide decades of substantial oil revenues. The Government of Guyana (GoG) created a sovereign wealth fund for the oil revenues and plans to spend most of the near-term revenue on education, health, and infrastructure.
Source: ESRI, Heritage Index, HMG Foreign & Commonwealth Office, US Department of State, International Trade Administration, International Law Review, Ernst & Young, Wood Makenzie & OGA data.
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