Guyana is considering the issuance of bonds as a means to enhance local involvement in its expanding oil and gas industry. This information was shared by Vice President Bharrat Jagdeo during his weekly press conference on April 10. This initiative reflects a similar approach recently taken by Suriname, which aims to empower local businesses and residents to invest in energy initiatives.
Currently, Suriname is developing its first offshore oil project.
While Guyana is ahead in this sector, it anticipates several benefits from a significant gas project on the horizon. Earlier this year, Jagdeo revealed that the government has pinpointed three investment options for everyday Guyanese to engage with.
In terms of gas development, Exxon has indicated plans for additional power generation, alumina processing, fertilizer production, and data centers, as reported by OilNOW.
Jagdeo elaborated on the bond strategy, stating, “We could issue the bond…allowing individuals to subscribe at a guaranteed coupon or interest rate, providing them with a stake that would yield significantly more than traditional bank savings.”
The Vice President also mentioned shares as another investment avenue.
Regarding shares, Jagdeo noted that the plan would impose limits on individual purchases to promote widespread public engagement. He mentioned that ventures like the proposed Fertilizer Plant are expected to be lucrative, allowing the government to assure a minimum return of around 10% annually to attract small investors, including farmers, teachers, miners, and public servants. He added that if profits exceed expectations, returns could rise to 20%, but would not fall below the guaranteed minimum. This structure offers a safety net while still allowing for potential higher earnings when the sector performs well.
Staatsolie, the state oil company of Suriname, enabled its citizens to invest in a bond to secure the necessary funds for its offshore oil development participation. This initiative proved successful, as Staatsolie surpassed its funding goal, raising US$515.8 million—US$211.7 million more than its initial target of US$304.1 million.
SOURCE: Oil Now (Guyana)