By Kiana Wilburg
When the People’s Progressive Party/Civic (PPP/C) returned to office in August 2020, it inherited an oil and gas sector that was only beginning to transform Guyana’s economic fortune. Five years later, much has been achieved: four offshore projects are pumping crude, a new petroleum law is in place, and billions of dollars are flowing into the Natural Resource Fund. While these achievements are indeed commendable, the task of nation-building while leveraging oil is far from complete.
What stands before the government is a roadmap of unfinished business. Each pending item signals continuity, with projects and reforms already set in motion that, when completed, will secure lasting benefits for Guyanese people.
Local Content upgrade
Passed in December 2021, the Local Content Act was a landmark moment for the nation. It safeguarded Guyanese workers and firms from being sidelined by foreign companies that were better capitalised and more experienced. The Act requires operators and major contractors to submit plans showing how they would hire Guyanese companies and workers. It also listed 40 categories of goods and services, with escalating quotas over time, to help local companies build capacity.
The law worked as intended: Guyanese firms gained a foothold in the sector, and multinationals were compelled to invest in training locals for technical and leadership roles. But the story does not end here. The government now plans to update the First Schedule of the Act to add new categories and quotas, expanding the spaces where local businesses can participate.
Beyond the schedule, reforms are aimed at tightening loopholes. The current definition of a Guyanese company — requiring 51% ownership by locals — has, in some cases, been exploited through “fronting”. Foreign firms have effectively run companies while Guyanese owners lent their names on paper, undermining the spirit of the law, the government has said. To curb this, the government is considering expanding the definition of a Guyanese company to include residency and tax participation requirements. This would ensure that the people certified as Guyanese are meaningful contributors to the country’s growth.
Payment terms are also under review. Local suppliers have had to, in the past, wait months for payment, straining their cash flow. The administration has already capped payment times at 45 days after the submission of a final invoice, but President Irfaan Ali has said even this is too long. The Local Content Secretariat is now working to shorten the window to 21 days.
Finally, the future of local content includes training. The Guyana Technical Training College at Port Mourant, Berbice, being developed with support from ExxonMobil and SBM Offshore, is due for completion in 2026. A major milestone, the FacTor FPSO simulator, was already commissioned in February 2024, ensuring Guyanese workers can train for the offshore environment.
Oil blocks auctions
Another milestone for Guyana was the launch of its first competitive oil blocks auction. For years, oil blocks were awarded through direct negotiations. By holding an open bidding process, the government signaled its commitment to transparency and competitiveness.
The auction attracted global majors like TotalEnergies, as well as local participation. But negotiations have taken longer than expected. Smaller players have struggled to secure financing and maintain strong partnerships. Only one consortium — TotalEnergies, Petronas, and QatarEnergy — has advanced to Cabinet-level approval. The government, however, insists that all eight blocks will be awarded at the same time, hence the delay.
Crucially, before launching the auction, the government modernized Guyana’s outdated petroleum legislation. The Petroleum Activities Act replaced a law more than three decades old, introducing modern governance and oversight. Alongside this, the government rolled out a new Model Production Sharing Agreement (PSA) with tougher fiscal terms: a 10% royalty and a 10% corporate tax, compared to the 2% royalty and tax-free regime of Exxon’s Stabroek PSA.
Although the first auction’s awards have not yet been issued, the work is poised to resume now that elections are over. The government also plans a second auction, this time with plans for a seismic survey to be conducted upfront by a hired firm to provide bidders with reliable data. Government has even hinted at tweaking the model contract to make it more attractive.
Taken together, these efforts will diversify Guyana’s exploration base, broaden investor participation, and expand the nation’s opportunities for new discoveries beyond the Stabroek Block.
Gas-to-Energy project completion and cheap power
Perhaps no single project will have a more immediate and transformative impact on citizens’ lives than the Gas-to-Energy project at Wales, West Bank Demerara. Its purpose: to pipe natural gas from the offshore Liza field to shore, where it will be processed and converted into affordable electricity.
ExxonMobil has already laid the offshore pipeline, while the government’s contractor Lindsayca is building the integrated gas processing facility and a 300 MW power plant. Despite initial plans to finish by 2024, the timeline has shifted to mid-2026. As of mid-September 2025, the project was 68% complete overall, and the power plant itself was 78% finished.
The stakes are enormous. The plant promises a 50% reduction in electricity costs, one of the PPP’s core promises. To keep momentum, the government has also launched procurement for Phase Two, which will double capacity to 600 MW and raise natural gas liquids (NGL) production from 4,000 barrels per day to 10,000. Revenue from these NGL sales will repay Exxon for its investment in installing the pipeline.
Supporting infrastructure is already in train. The government has invited bids for an NGL storage and offloading facility with a pipeline to the Demerara Channel, ensuring exports can move smoothly.
Gas-to-Energy will enable new industries, create jobs, and make the economy more competitive.
Hammerhead and Longtail: More approvals
Guyana’s oil production has surged from zero in 2019 to nearly 1 million barrels per day of capacity across four projects. Two more — Uaru and Whiptail — have been approved and will come on stream between 2026 and 2028. Next in line are Hammerhead and Longtail, both awaiting government review.
Hammerhead will add about 150,000 barrels of oil per day when it comes online, likely by 2029. Its FPSO will be delivered by MODEC. The project will also include a gas export line, to allow for the delivery of gas to shore, alongside oil production for export.
Longtail, targeting three gas-rich fields, is even larger. It is expected to produce 240,000 barrels per day of condensate, alongside 1.0–1.5 billion cubic feet of gas per day. It is expected to start production in 2030 and would have a longer production life than Exxon’s prior projects.
For both projects, the government must complete technical and environmental reviews, approve field development plans, and ensure compliance with the law. Together, Hammerhead and Longtail will add nearly 400,000 barrels per day of new liquids production and position Guyana to expand gas development alongside oil.
Natural gas frontier
Beyond Gas-to-Energy, Hammerhead and Longtail, Guyana’s biggest unfinished frontier is natural gas. ExxonMobil has discovered large gas fields near the border with Suriname. Developing these resources would fundamentally change Guyana’s energy profile.
The government has pressed Exxon to act faster, urging diversification beyond oil. To prepare, it has hired Fulcrum LNG, a U.S. startup, to cooperate with Exxon on the way forward.
The vision is expansive. Gas from these fields could feed an industrial estate in Berbice, powering data centers, manufacturing plants, and new industries. A pipeline from offshore to Berbice would be required, creating an entirely new corridor of economic activity.
When developed, this gas will open a new revenue stream for Guyana and solidify its place as not just an oil exporter, but a gas economy as well.
Much of the PPP government’s oil and gas agenda remains a work in progress. Each represents the continuity of a larger vision, that Guyana’s natural resources must be harnessed transparently, equitably, and for the benefit of all.
