Items 2-6 Concerning the Microeconomics of Guyana – the Americas fastest rising Petrostate

Introduction

As indicated last week, today’s column closely reports the findings in Budget 2024 regarding Items 2 to 6 listed therein. The final item [7] will be addressed next week                         

Item 2 Petroleum exploration

Here Budget 2024 asserts that, in keeping with Government’s aim to auction oil blocks, the country’s inaugural licensing round was completed in 2023. Based on global best practice, block sizes for investments were created to accelerate exploration and development.

Fourteen blocks were created within shallow and deep-water areas. During the bidding round, eight blocks were shortlisted based on the bidders’ ability to meet the criteria of the expected work programme  as well as the required financial commitments.