Economic Update

Guyana is currently one of the fastest growing global economies. Despite the COVID-19 pandemic and severe flooding in 2021, economic growth was recorded at 19.9% for the year. The oil and gas sector continues to be the primary driver of the economy. However, the non-oil sector is also experiencing notable economic growth. Inflation in Guyana was 5.7% for 2021 due to rising food prices along with pandemic-related global supply chain issues.

Oil and gas development remains strong, with gas from the Liza 1 and Liza 2 projects to supplement electric power to Guyana through the upcoming Gas to Energy project. The Liza Unity, ExxonMobil’s second FPSO vessel in the Stabroek Block, will begin production in the first half of 2022, increasing Guyana’s production from 120,000 barrels per day (B/D) to a cumulative 340,000 B/D at peak production.

ExxonMobil and its partners continue extensive drilling in the Stabroek, Kaieteur and Canje blocks. CGX Guyana has hit high quality crude Kawa-1 Well and is continuing its drilling campaign there to determine the true magnitude of the find. With this find in hand, CGX Guyana will construct a deep-water port in Berbice to serve both Guyana’s and Suriname’s offshore activities.

Two historic legislative bills were recently passed by Guyana’s Parliament: the Natural Resources Fund Act and the Local Content Bill. The Natural Resources Fund Act governs the mobilisation of finances accrued from Guyana’s utilisation of its natural resources to underwrite national development priorities. The Local Content Bill establishes the basis for the oil and gas sector in working and hiring Guyanese employees and companies.