Guyanese Personal Finance and Business Analyst, Youni Abdul, says his country’s government is taking steps to ensure that it maximises revenues from the country’s booming oil and energy sector. 

Since 2015, there have been over 30 oil discoveries off the coast of Guyana, totalling about 11 billion barrels of oil.  In April, Guyana sold its first 1 million barrels of crude oil to ExxonMobile for US$106 per barrel. 

Last week the Government said it now expects to earn US$1.1 billion from the energy sector this year. That is 32% higher than its original estimate.  The boost is a result of the war in Eastern Europe, which has increased oil demand worldwide.

Speaking on Taking Stock, Abdul said that several committees have been established to help guide the country through its new-found wealth. 

“It is certainly true that Guyana is in for an influx of money and the infrastructure was not there initially to receive that money and strategize how it will be spent. But, within the last 18 months, the Government has received a lot of input externally to change that,” he said. 

He noted that the Natural Resource Fund has several committees dedicated to providing guidance, insight and oversight for the Government spending of the funds earned from the energy sector. 

Group Sovereign Research Analyst at JMMB, Theodore Mitchell, noted that the oil discoveries present many opportunities to grow Guyana’s economy. 

“It’s a frontier economy.  Prior to oil and gas coming on the front line, Guyana was the second poorest economy in the western hemisphere, so this is indeed a game changer for them,” he said.

He added that Guyana’s economy has expanded significantly, growing 36% last year, and is expected to continue growing in double digits until 2025. 

To that extent, Abdul said he has observed that steps are being taken to ensure that the proceeds from the energy sector impact everyday citizens. 

“A lot of people are getting high-paying jobs in the oil and gas sector. An average salary in Guyana is about GUY$5000 per month and people in the oil and gas industry [are] raking in anywhere from GUY$300-600,000 per month,” he said.

He did note that individuals such as business owners and private contractors, who would have had the instruments to participate in the economy before are getting first dibs. 

Abdul said that the country is actively seeking foreign investors to help boost the country’s gross domestic product.  He noted that 8-9% of the 36% increase in GDP was from non-energy-related sectors. 

The analysts also said that increased interest in the economy could lead to greater participation in the Guyana stock exchange. 

Abdul noted that the Guyana Stock Exchange is not as liquid as others in the Caribbean, with trading only taking place once a week and only a small portion of the listed companies trading.

He theorized that as more companies begin investing in the country and opening branches, this will create opportunities for more market listings and trading.