Govt mulls opening up investment opportunities in oil and gas for citizens – VP

– says safeguards must be implemented to ensure citizens gain, not lose money

The People’s Progressive Party/Civic (PPP/C) Government is mulling opening up investment opportunities for Guyanese in the oil and gas sector, cognisant of the fact that there is very little in the way of interest earnings for persons who are saving money in the traditional banking system.
During a youth segment of the Guyana Energy and Supply Chain conference, Vice President Dr Bharrat Jagdeo noted that the aggregate deposits in the local banking system has grown significantly over the years. He also reflected on ways in which the citizens of Guyana can be allowed to invest their own money in the oil and gas sector.
Over in Suriname, the state-owned oil company, Staatsolie, has issued bonds that citizens can invest in, with a view of financing an offshore oil project. Citizens can purchase a percentage of this bond.

This can lead to them gaining significant earnings in much the same way as stocks are purchased on the stock market.
During Friday’s session, Jagdeo lauded Suriname’s initiative and noted the possibility of Guyana itself going this route.
“Suriname can’t borrow directly – the Government – so Staatsolie is raising the money for the equity. I anticipate in the future, we’ll have to start creating these structures for people who are saving more money now. Wages and salaries in the public sector, since we got into office, have gone up by about US$500 million, per year,” he stated.
“So, if you look at the aggregate deposits in the banking system, it has grown significantly. People are not getting a great interest rate here. So, we have to create more vehicles, with guaranteed opportunities, for people to invest in,” Jagdeo explained.
According to the VP, these opportunities can include future Government issued bonds by the Government of Guyana. While he noted that the Government does not have to go this route in order to raise equity, it is nevertheless a good initiative for the people of Guyana to benefit directly from, to generate wealth.
That being said, there is also a responsibility to ensure that Guyanese money is not at risk.
According to Jagdeo, “even if they have equity, you have to make sure there is a guaranteed return on the equity. Or else people can lose money.”
Suriname’s Staatsolie is seeking to secure an unprecedented US$1.5 billion in bank financing this year to ensure it can participate in the country’s Gran Morgu energy project. The project, led by TotalEnergies, is Suriname’s first major offshore project.

The country has discovered reserves that may allow it to compete with neighbouring Guyana as a prominent offshore crude- and gas-producing country once it sees the first oil in 2028. The oil and gas development is expected to cost about US$12.2 billion in real terms. Staatsolie’s share in Gran Morgu would require US$2.4 billion.
Guyana’s Stabroek block is held by United States (US) oil company ExxonMobil and its other joint venture partners including Hess and CNOOC. The Liza Phase one and two, as well as the Payara development, where Exxon is the operator, are currently the only oil developments producing oil.
While the oil blocks are overwhelmingly held by private companies, there has been talks of the Government of Guyana collaborating with other countries to develop future blocks. For instance, there is a 20 per cent portion of the Stabroek block that the Government, back in 2023, had said would be used for Government-to-Government collaboration once it is relinquished by ExxonMobil.