The recent successes in Suriname and Guyana, in particular, has meant that this region remains remain top of peoples’ agendas. The significant gestation period experienced in this region, there is perhaps excitement than would otherwise be expected because of the significant amount of shared data that already exists amongst participants.
May 18, 2021
Americas - South
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 percent. In response to COVID-19, the Bank of Guyana anticipated a 10 percent 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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