Guyana Expands Oil Sector as Officials Push Local Firms and Energy Investment

Guyana’s fuel prices rose 13% over the weekend, pushing gasoline to $258 and diesel to $318 per litre, even as the country’s oil output continues to surge. An energy analyst says Guyana should swap its crude for refined fuels and build a strategic fuel reserve to reduce import costs, ease inflation and lower transport and power expenses.

In this editorial, Kaieteur News argues that ExxonMobil’s 2016 Guyana oil contract is unfair to the country and should not be promoted abroad as a model. It says both the PPP/C and APNU+AFC have criticized or regretted the deal, while audits and expense details remain opaque, leaving Guyana with too little benefit from its oil wealth.

ExxonMobil’s Guyana chief, Alistair Routledge, said the company’s role is to produce oil, not raise living standards, intensifying debate over who benefits from Guyana’s boom. His remarks come as critics say Guyana gets a small share of oil revenue while Exxon gains heavily from the country’s fast-growing production.

President Irfaan Ali urged Guyana’s private sector to focus on regional energy opportunities as the country seeks to become a central hub and future net energy exporter. He pointed to growing projects in Trinidad and Tobago, Suriname, Venezuela and Brazil, while Guyana’s offshore oil output is nearing 900,000 barrels a day and is expected to pass 1 million by year-end.

Guyana is evaluating proposals from five foreign companies for the 165-MW Amaila Falls hydropower project as it seeks cleaner power for mining, including two gold projects that could each need about 85 MW. President Irfaan Ali said the project could help cut diesel use and lower the sector’s carbon footprint, with negotiations to begin after bid review. The long-delayed project is now moving forward with backing from partners including Qatar and US EXIM Bank.

Dr. Karen Abrams says Guyana’s oil wealth will only translate into lasting growth if the country invests heavily in STEM education, problem-solving and digital skills for its young people. She warns that without stronger schools, labs and access beyond the coast, Guyana could end up importing talent while many locals are left behind in the shifting economy.

Guyana is now receiving a larger share of profits from the Stabroek Block, but new ExxonMobil projects could cut the country’s take from 39.8% to 12.5% unless future developments are ring-fenced. President Irfaan Ali says government will seek expert advice, while Exxon opposes changes and says ring-fencing could slow investments. Several international and local voices are urging stronger protections for Guyana’s revenue.

In this column, Dr. Karen Abrams argues that Guyana’s oil wealth should be used to deliver reliable electricity, not just more fuel spending. She notes that blackouts are mainly linked to strain on GPL’s transmission and distribution network, while the Gas-to-Energy project and grid upgrades must be tracked with clear public benchmarks. The piece says dependable power is essential for households, small businesses and food production.

In this opinion piece, Anthony E. Paul argues that Guyana must plan its gas sector as one integrated system, not as separate projects, because pipeline, power, industrial demand and upstream production all have to line up. He says the delay at Wales shows the cost of poor timing, and warns that a second pipeline should only be built after the state fully understands gas supply, reservoir constraints and long-term national priorities.

Guyoil raised fuel prices on Saturday by as much as 13%, with gasoline up from $228 to $258 a litre and diesel from $278 to $318, as the Middle East war disrupts global supply. Other stations also increased prices, adding pressure on Guyanese consumers. The hike underscores Guyana’s vulnerability because it exports crude but imports all refined fuel.

Guyana’s Audit Office is seeking to create a specialised oil and gas unit to better scrutinise the fast-growing sector, after an earlier funding request was rejected by the previous Public Accounts Committee. Auditor General Deodat Sharma said the office is still auditing agencies like the Natural Resource Fund, EPA and GRA while building technical capacity as the economy and national budget expand.

Lindsayca Guyana Inc., already behind on Phase One of the Wales Gas-to-Energy project, has submitted two high-priced bids for an NGL storage and offloading facility, while a Chinese firm offered a far lower price. The tender process is being questioned because it could add more cost to a delayed project that is already forcing Guyana to rely on costly rented power ships and prolonging grid instability.

This editorial argues that ExxonMobil’s claim of Guyana as a success story ignores how the 2016 production-sharing agreement let the company recover US$55 billion quickly through generous cost-recovery terms, leaving Guyana with a smaller share for years. It says the experience shows how much contract terms matter and warns against repeating the same imbalance in future oil deals.

Oil and gas companies spent about US$466.2 million on goods and services in Guyana’s local-content sectors in the first half of 2026, up from US$352 million a year earlier, while 500 more Guyanese businesses registered with the local content secretariat. The government also launched an online portal to speed approvals, as it considers adding 20 more areas for local participation in the expanding oil sector.

GCCI President Kathy Smith is urging the government to give Guyanese firms stronger protection and fairer access to oil and gas work, saying foreign companies should help build local capacity rather than dominate the sector. She also backed expanding the Local Content Act beyond its 40 service areas, as officials move to close loopholes and add more opportunities for local businesses.

In this opinion column, GHK Lall argues that President Irfaan Ali and Vice President Bharrat Jagdeo could use Guyana’s ties with China to pressure Exxon into renegotiating the oil contract. He says the government’s talk of “sanctity of contract” may be shielding it from challenging Exxon, and urges a tougher, more strategic approach in Guyana’s interest.

Guyana is reviewing 20 more areas for local participation in the oil and gas sector, which would expand the Local Content Act’s first schedule to 40 categories for goods and services. The move could open more contracts for Guyanese firms as the industry has already spent over US$3.6 billion locally and registered more than 2,000 vendors.

Georgetown Chamber of Commerce and Industry President Kathy Smith urged Guyana to closely monitor foreign and regional oil contractors and give local firms clearer information on upcoming contracts, technical requirements, certification, insurance and financial controls. She said stronger oversight should ensure oil-sector growth benefits Guyanese businesses, especially as the country prepares for gas development.

ExxonMobil Guyana president Alistair Routledge urged local private-sector groups to help create the conditions for major gas investment, saying investors need clearer demand, supply certainty and a roadmap for projects like the planned Berbice pipeline. He said the gas sector could bring jobs, industries and wider economic diversification, while Minister Deodat Indar called on Guyanese businesses to build skills and partnerships to seize downstream opportunities.