In the first half of the year, the International Monetary Fund (IMF) had projected that Guyana would grow by some 53 percent. But given the impact the COVID-19 pandemic has had on the nation’s economy since then, the Fund thought it prudent to downgrade that Gross Domestic Product (GDP) forecast to 26.2 percent. This was noted in the Fund’s October World Economic Outlook report.
While it notes such a decline on the horizon for the new oil-producing nation, the financial institution was keen to state that Guyana is poised to experience an 8.1 percent real GDP growth next year, followed by 30 percent in 2022 and 22.3 in 2023.
The Fund further stated that Guyana’s high GDP growth can be credited to the increased economic activity in its oil sector. Last year December, Guyana started producing oil from the Liza Phase One Project located in the Stabroek Block. The recoverable resources for that offshore concession are said to be more than 8 billion barrels of oil equivalent resources.
Furthermore, the 18 discoveries on the block to date have established the potential for at least five Floating Production Storage and Offloading (FPSO) vessels which would produce more than 750,000 barrels of oil per day by 2026.
The Stabroek Block is 6.6 million acres and ExxonMobil’s affiliate, Esso Exploration and Production Guyana Limited, is the operator and holds 45 percent interest in the block. Hess Guyana Exploration Ltd. holds 30 percent interest and CNOOC Petroleum Guyana Limited, a wholly-owned subsidiary of CNOOC Limited, holds 25 percent interest.