Opening Doors: Reflections on My Visit to Guyana
CEO Richard Madden sat down with our Marketing Manager, Shane Kirk here at WeConnect Energy to put some words to paper after a whirlwind trip from a very welcoming, tropical, and rain drenched Guyana.
January 22, 2025
Welcome to Guyana
So, what dragged me out of Edinburgh in the depths of winter and brought me to such an exotic corner of the world you might be wondering? Well, I was fortunate enough to be able to join a Trade Delegation to Guyana with our friends at the Energy Industry Council (EIC) and Aberdeen International Associates (AIA).
Did anything unexpected stand out during my trip to Georgetown, the capital city of Guyana? Absolutely. The climate was wetter than I had anticipated, which is something to keep in mind for future visits. The local accent pleasantly caught me off guard, there’s no mistaking you’re in the Caribbean once you start chatting with the locals. And let’s not forget the donkeys roaming the streets, a charming cultural quirk that added to the unique vibe of the city. Overall, the mood was incredibly positive, with warm and welcoming people who made me feel right at home. As for the infrastructure, it was an adventure in itself, with a few blackouts thrown in to keep things interesting.
The trip provided access to key decision-makers at the highest levels of government, showcasing an unusual and refreshing openness. I was impressed by the competence of the local people, though it’s clear that there is a need for increased investment in local infrastructure, training, and the guidance of experienced external consultants. This visit marked a promising conclusion to my 2024, and I wanted to use this blog to reflect on the experience and share some thoughts about future plans inspired by the trip.
A Snapshot of Guyana’s Energy Landscape
Some of you may struggle to point out Guyana on a map of the world, fear not, you aren’t alone! This South American sliver of land is nestled between Venezuela, the mighty Brazil, and Suriname to the east. In recent years, the country has been riding the waves of oil success in the Latin America and Caribbean oil rush that’s been building momentum. Thanks to envy-inducing Real Oil GDP growth levels, the GDP per capita grew 38% in 2023, and is set to continue this high double-digit growth into 2027 and beyond. The graph below via statista clearly shows the impact of the energy industry on the country’s growth trajectory – incredibly impressive.
A Brief History of Guyana
Guyana, with a population of approximately 650,000, is a developing nation with vast natural resources and significant investment potential. Known for its emerging oil and gas sector, the country is actively diversifying its economy to include mining, agriculture, and infrastructure development. Notably, Guyana's economic energy progress is balanced by a strong commitment to preserving its native and pristine flora and fauna – it is a green country - and it is very proud of its carbon-neutral status. From my discussion with senior figures, the country is firmly focused on being not just a sustainable energy leader, but a global one in the energy market. One that is firmly rooted in the belief of balancing sensible oil and gas production whilst being able to remain carbon negative, largely due to the fact that around 97% of the country is covered in lush Amazonian rainforest. A brief historical synopsis of Guyana reads as follows:
- 1966: Achieved independence from British rule.
- 1970s: Adopted cooperative socialism, which transitioned much of the economy to state ownership.
- 1982: Declared bankruptcy amidst economic turmoil, with substantial debt burdens persisting through the 1980s.
- 1987: Recovery plans initiated, moving away from socialist policies.
- 1992: Held its first free and fair elections, ushering in reforms, including signing the Paris Club agreement for a multi-year debt write-off.
- 2008: Interestingly, while many countries struggled during the global financial crisis, Guyana experienced strong growth thanks to its gold reserves, another commodity it is blessed with.
- 2015: Oil discoveries began reshaping the country's economic landscape.
- 2023: The Petroleum Activities Act was passed by Guyana's National Assembly in August 2023, replacing the Petroleum (Exploration and Production) Act of 1986.
On my trip, we heard from a wide variety of ministers and government representatives and were privy to some really impressive and senior figures within the government. I will not name-drop anyone but some notes from my observations and discussions I have included below.
- Over 50 significant oil discoveries have been made in Guyana's offshore blocks, transforming it into one of the world's fastest-growing economies.
- The current oil exports amount to approximately 228 million barrels annually.
- Impressive plans to develop over 30,000 acres of land for various sectors, including agriculture and housing.
- Six power plants, primarily gas-driven, are in the pipeline to enhance energy self-sufficiency and reliability.
- A new fertilizer plant is expected to enable local production and reduce dependence on imports for food security.
- The government aims to double the native population in the near future to support growth and industrialisation. The exact details on this are a little grey but the aim is for the population to reach/exceed 1.5 million.
- The Low Carbon Development Strategy (LCDS), initiated in 2007, integrates environmental preservation with economic development, supported by $250 million from international bodies.
- After past economic hardships, including bankruptcy in 1982, Guyana has implemented critical changes, including a sovereign wealth fund currently valued at $5 billion. A drawdown of $2.1 billion is planned for 2025, earmarked for public and private capital projects to sustain growth.
- Energy costs remain high, with a relatively unreliable and unstable electricity supply, which is a paradox given Guyana's growing energy resources.
- Some of the infrastructure leaves a lot to be desired. At times it felt like investment in energy infrastructure has taken precedence over areas like national roads or national grid systems.
- The booming economy has created intense demand for skilled local talent, with challenges in meeting this growing labour need.
- The lack of digital signing capabilities presents an administrative hurdle and the Guyanese dollar is the official currency, but forex availability is limited, which can pose challenges for international transactions.
Moving Forward
As the Guardian reports, two elements stood out to me when flying over an abundance of green – it’s a big country, with a relatively small population. On my trip, the British influence was readily apparent. I noticed remnants that harked back to the UK from British rule, such as the classic red post boxes, the parliament buildings, and a game synonymous with Britain, cricket – played all over. Using Britain as a comparison, this former British colony has about 90% of the land area of the UK but less than 2% of its population. Its oil reserves are estimated at 11 billion oil-equivalent barrels, around three-quarters of the oil reserves of neighbouring Brazil. Guyana’s total petroleum liquids production is forecasted to continue to grow in 2025 as seen in the EIA graph below.
Not only has the country been graced with oil, but according to Wood Mackenzie’s report “Can Guyana and Suriname LNG compete against new global supply?”, both Guyana and neighbour Suriname could supply up to 12 million metric tonnes per annum (mmpta) of LNG by the next decade too.
The Infrastructure and Growth Potential
Having an abundance of resources is one aspect; effective extraction and efficient operations are another. One thing that was hard to miss during my trip was the state of the country’s infrastructure. It’s an area where demand seems to be outpacing capacity, especially with the rapid growth in oil and gas seemingly taking precedence. It felt like ports, roads, and other essential facilities might be struggling to keep up, and while I saw some promising developments, I couldn’t shake the feeling that they were not quite thinking big enough. Ultimately, if the infrastructure doesn’t catch up, it could hold back the country’s potential.
That said, it’s fascinating to see how careful Guyana is being about its newfound oil wealth. They haven’t rushed into spending or over-leveraging themselves, which is smart. But I do think there’s a fine line between caution and missed opportunities, and finding the right balance in the coming years will be crucial.
228 million
Current oil exports amount per annum
30,000 acres
Of land to be developed for various sectors
5 billion dollars
Value of Guyana's sovereign wealth fund
The People
As my visit progressed, what struck me most was how entrepreneurial the place and culture felt, I met individuals on my trip who own and manage multiple businesses– a hustle culture might not be the correct term but there are opportunities aplenty, and the Guyanese I met were seizing them. There’s a clear willingness to learn and adapt, I found myself frequently in discussions with senior leaders who took an active interest in my opinions, my business, and how other countries operate. This curiosity is something think will serve Guyana well in the years to come. The local business community has a real energy about it, people are positive, ambitious, and focused on improving their standard of living.
Conversely though, at the same time, I can see why businesses might find it a little challenging to operate here. From what I heard, the government is still in the process of policy formation, which means there’s some inconsistency and flexibility in how things are done. It’s a double-edged sword, really, it can make things fairer for everyone, but it can also slow down investment and progress. I couldn’t help but compare it to the UAE, where clear, visionary leadership in the energy industry has set the country up for massive success. Guyana could learn a lot from that example. This approach was one of the many reasons we set up our Abu Dhabi base in 2009.
Part of this challenge and balance I referenced is that Guyana faces a shortage of talent. With a relatively small population, as I’ve mentioned, the country simply doesn’t have enough skilled workers to match the pace of its growth and needs to look further afield to plug this issue. Again, there are problems too, in the capital, Georgetown, there are very few (therefore expensive) international-standard hotels in the country, which gives you an idea of the constraints and, in some regards, nature of the country’s stage of development.
There’s a real need for skilled expats to come in and help, but it’s not just about bringing people in, it’s about investing in local talent for the long term. From what I have seen and heard, Guyana has a solid education system, but I believe professional development is where more attention is needed. In my opinion, it’s a delicate balance: you don’t want to overpromote local people who aren’t ready for leadership roles, which can lead to mismanagement and stagnation, but at the same time, you need to give locals the tools to succeed.
At WeConnect Energy, we see ourselves playing a big part in this. With over 15 years of experience connecting energy talent with opportunities, I believe can make a real difference here. By working with local businesses and governments, we can help bridge the skills gap and create a pipeline of talent that will benefit the country for years to come. We can also offer a variety of senior advisors to the country, including individuals who have experience working in-country, Senior Geologist Ed Willet being one of those talents.
What’s really interesting is that Guyana’s potential goes way beyond oil and gas. There are huge opportunities in mining, construction, agriculture, and even renewable energy. In many ways, this vast potential reminds me of how the UAE diversified its economy, using oil revenues to invest in things like clean energy and technology. Guyana could absolutely follow a similar path, and I think that kind of forward-thinking will be key to its success. Again, we have senior talent such as CSS leader Martin Jagger, who has a host of experience in the Low Carbon and Renewables sphere, particularly in CCS.
What’s Next?
Future trips to the area are definitely on the cards, I am actively speaking to people in my network who are considering a trip here or would be interested in doing business within Guyana or Suriname. This is a place that I want to stay close to as it grows and evolves. For those interested in exploring more, in February, there are two key events in the region, one in Guyana and one in Suriname. The Guyana Energy Conference & Supply Chain Expo 2025 and the International Business Conference 2025. I think they’ll be excellent opportunities to connect with others and hear from leaders about the vision for the region’s future.
Here at WeConnect Energy, our goal is a simple one: to bring world-class talent to the region and support businesses in achieving their goals. Guyana is a country with so much going for it, and while there are challenges, I believe the opportunities far outweigh them. It’s exciting to think about where the country could be in five or ten years, and I’m grateful to have had the chance to see it all firsthand.
Thanks again to the EIC and all the delegates who travelled with me and made this a memorable and adventurous trip. If this blog resonates with anyone and you would like to discuss more, please do reach out to me.
Thank you,
Richard Madden
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Empowering talent for a brighter tomorrow
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