Former UK PM lauds Guyana’s economic progress, management of oil resources

…says Guyana pulled itself out of “very tough economic situation”

Former British Prime Minister Tony Blair, who is visiting Guyana and taking part in the launch of the Sophia Point Rainforest Research Centre, has lauded the way Guyana has been managing its oil successes, contributing to the country becoming one of the world’s most exciting destinations.
The former United Kingdom (UK) Prime Minister held a discussion with President Dr Irfaan Ali in the University of Guyana (UG) George Walcott Lecture Theatre on Tuesday morning. During the initial discussion, Blair traced Guyana’s transformation from the 1990s, when it had to restructure its economy.
“What brings me here is a very simple thing. Which is that this country has come through some very difficult times, like the 1990s. Very tough economic situation. A country that was very poor at the time. Had to stabilise itself.”

“In 2009 came out with a remarkable initiative. The Low Carbon Development Strategy. And then in one of these strange, twists of faith, is expected now to become a major oil and gas producer,” Blair further said.
According to Blair, the People’s Progressive Party/Civic (PPP/C) Government has been approaching the management of the oil and gas sector in a careful manner. He was optimistic that Guyana will learn from the various examples of countries who have developed their oil and gas industries.
“I think Guyana, because of the enormous opportunities and consequent challenge, and the way the Government is approaching it, which is very careful and deliberate and learning the challenges of other countries that have been through these types of processes and how they avoid the errors and embrace the successes, I think Guyana is going to be one of the most exciting places on the planet,” Blair further said.
The former British PM met with President Dr Irfaan Ali during the latter’s visit to the United Kingdom earlier this year for King Charles III’s coronation. During his visit to Guyana, Blair is also expected to visit a number of infrastructural projects.
Driven mainly by its burgeoning oil and gas sector, Guyana is once again leading the Latin America and Caribbean (LAC) Region with the fastest growth rate. In fact, with a projected Gross Domestic Product (GDP) growth rate of 25.2 per cent this year, it’s the fastest growing economy in the world.
Guyana is, in 2023, expected to earn a total of US$1.6 billion in profit oil and royalties combined, buoyed by the start-up of ExxonMobil’s third development in the Stabroek Block – the Payara development – before the end of the year.
Based on the gazetted inflows of money for the first quarter, the Natural Resource Fund received US$377.1 million in oil and gas payments. This included a payment of US$157.6 million made in January for two profit oil lifts that occurred last year from the Liza Unity and Liza Destiny floating production, storage and offloading (FPSO) vessels.

This increased the balance of its Natural Resource Fund to well over US$1.4 billion by the end of March 2023. The NRF also ended the month of July with a balance of $387.6 billion (US$1.85 billion).
The Government has been careful in its management of these oil funds. In January of this year, the Bank of Guyana signed an agreement to officially hand over control of the NRF to the Board of Directors appointed by the President. According to Section 5 (6) (d) of the Act, the Board is required to enter into an operational agreement with the Bank, so that management of the fund can change hands. This agreement was signed two days after the reading of the 2023 budget.
The NRF Board consists of five members, while the Public Accountability and Oversight Committee (PAOC) is comprised of nine members, and the Investment Committee, seven members. When it comes to the NRF Board, it is Chaired by retired Major General Joe Singh.
Other members of the Board are Guyana’s Permanent Representative to the United Nations, Carolyn Rodrigues-Birkett; Private Sector Executive Ramesh Dookhoo; former People’s National Congress (PNC) parliamentarian Dunstan Barrow; and former Chancellor of the University of Guyana, Professor Compton Bourne.
While safeguards exist, Vice President Bharrat Jagdeo has already signalled the Government’s intention of further strengthening the management capabilities of NRF, even with the improvements that have already been made to the fund’s management by the PPP/C. This is particularly important as the monies received from oil and gas continues to grow each year. (G3)