Chairman of the Wales Development Authority, Asgar Ally, recently noted the Guyana Government’s aspirations to emulate Saudi Arabia’s success in the oil industry.
Speaking during an interview at the Jamaica Stock Exchange Conference earlier this year, Ally, a former finance minister, highlighted the potential for Guyana’s oil sector.
Since the discovery of oil offshore Guyana in 2015, with production commencing in December 2019, ExxonMobil Guyana Limited (EMGL) the operator of the Stabroek Block, has sanctioned three floating production, storage, and offloading (FPSO) vessels — Liza Destiny, Liza Unity, and Prosperity — collectively producing over 640,000 barrels per day (bpd).
Ally noted that while Guyana currently receives, only 14.5% of oil revenues from the Stabroek Block, including royalties and profits, the country still has the potential to become a significant player in the industry.
Drawing parallels with Saudi Arabia’s early oil revenue experiences, Ally underscored the importance of strategic development.
“Let me give an example. Take Saudi Arabia. They were just getting like us initially, very little from their oil,” Ally highlighted. He elaborated on Saudi Arabia’s success story, citing the establishment of Aramco, the state-owned petroleum and natural gas company, which propelled the nation to become one of the wealthiest in the world.
“But they started small,” Ally remarked, adding, “So the Saudi model is a good one and we are (considering setting) up our oil company, but you know Exxon has the expertise, they have the capital. We don’t have it.”
Ally stated that by adopting a measured strategy and drawing inspiration from successful models, Guyana aims to leverage its burgeoning oil industry to drive sustainable economic growth and development.
