Oil, Gas and the Transition to Renewables 2025 Comparisons

The state, by way of sovereign right, owns all natural resources within the territory of Guyana, including the maritime exclusive economic zone. The Model Profit Sharing Agreement (PSA) states that all petroleum existing in the Co-operative Republic of Guyana and its exclusive economic zone is the property of the Co-operative Republic of Guyana, and the Co-operative Republic of Guyana holds exclusive sovereign rights with regard to the exploration and exploitation of all petroleum existing in this area.

The government, through the Ministry of Natural Resources, grants the following licences under the Petroleum Activities Act:

• petroleum exploration licence;
• petroleum production licence;
• pipeline operations licence; and
• geographic storage licence for carbon dioxide.

Licensees own rights as prescribed in their individual licence.

A similar structure exists for ownership of mineral interests. In this case, minerals are also owned by the state. The Guyana Geology and Mines Commission (a statutory body corporate established under the Guyana Geology and Mines Commission Act) issues licences for prospecting, production and trading of minerals, while the Guyana Gold Board issues licences for export of gold.

The government agencies which primarily regulate the upstream and relevant midstream oil and gas operations are:

• The Government of Guyana: The government develops policies and legislation, builds capacity, and promotes governance. Applicable legislation for the government includes the Constitution, which establishes the state’s ownership of natural resources, and the Petroleum Activities Act which sets out the scope of powers of the government.
• The Ministry of Natural Resources (MoNR): This Ministry is responsible for administration and management of all natural resources including forestry, mining and petroleum. Its mandate covers the Petroleum Resources Governance and Management Project (GPRGMP), and it is responsible for the administration of permits granted under the Petroleum Activities Act.
• The Environmental Protection Agency (EPA): This state agency regulates the oil and gas sector by granting permits for various development activities in the sector. It oversees the management of the environmental impact of the various petroleum development activities through the monitoring of compliance with the permits issued.
• The Guyana Geology and Mines Commission (GGMC): This state agency is responsible for planning and securing petroleum’s development, exploitation, and management. It also provides critical information on the industry, and reports to the MoNR. GGMC
• The Local Content Secretariat: This unit within the MoNR is responsible for administering the Local Content Act and its requirements.

The upstream oil and gas industry in Guyana is also regulated by laws and regulations such as the Income Tax Act, the Corporation Tax Act, the Property Tax Act, and the Income Tax and (In Aid of Industry) Act. Under the said tax acts, the Guyana Revenue Authority is a regulator.

For downstream activities, the Guyana Energy Agency is the regulator and issues licences for the import, distribution and storage of petroleum products. The applicable legislation is the Guyana Energy Agency Act.

There is currently no national oil and gas company involved in upstream operations.

The Guyana Oil Company Limited (Guyoil) is the state-owned company that conducts downstream oil and gas operations. It is responsible for the importation, storage and distribution of petroleum products, including gasoline, diesel, kerosene, heavy fuel oil and aviation turbine fuel, and operates storage facilities for the products it imports and distributes on behalf of the state.

The principal laws and regulations governing the upstream and midstream operations are as follows:

• The Petroleum Activities Act 2023 repeals and replaces the Petroleum (Exploration and Production) Act Cap 65:04 and the Petroleum (Production) Act Cap 65:05 and provides for the exploration, production, storage, and transportation of petroleum in Guyana, and for related matters. Key points addressed in this legislation are:
1. vesting of property of petroleum in the state;
2. powers of the Minister of Natural Resources (the “Minister”);
3. licensing and restrictions on rights of licensees;
4. exploration, development and production;
5. unitisation, decommissioning, monitoring, supervision, inspection and verification; and
6. transfer of rights.
• The Local Content Act 2021 provides for the implementation of local content obligations on persons engaged in petroleum operations or related activities in the petroleum sector. Its objectives are to (i) prioritise Guyanese nationals and Guyanese companies in the procurement of goods and services for the enhancement of the value chain of the petroleum sector; (ii) enable local capacity development, and (iii) promote competitiveness and encourage the creation of related industries that will sustain the social and economic development of Guyana. Key points addressed in this legislation are:
1. registration and certification;
2. local content plans;
3. minimum local content levels; and
4. monitoring, evaluating and reporting of local content performance.
• The Natural Resources Fund Act establishes the Natural Resource Fund (the “Fund”) to manage the natural resource wealth of Guyana for the present and future benefit of the people and for the sustainable development of the country. Key points addressed in this legislation are:
1. deposit of petroleum revenues directly into the Fund;
2. public oversight and management of the Fund;
3. withdrawals and investments; and
4. accounting, reporting and auditing of the Fund.
• The Environmental Protection Act provides for the management, conservation, protection, and improvement of the environment, the assessment of the impact of economic development on the environment, the sustainable use of natural resources, and for incidental or connected matters. Key points addressed in this legislation are:
1. establishment of the Environmental Protection Agency;
2. requirements for environmental impact assessments;
3. prevention and control of pollution; and
4. environmental offences.

Here is a link to a comprehensive list of all the laws and regulations governing the oil and gas sector in Guyana.

Private investors in upstream interests may apply to the Ministry of Natural Resources for any of the following licences:

• a geological or geophysical survey permit, which allows a company to carry on geological, geophysical or other surveys and investigations which, in the opinion of the Minister, are relevant for the identification of petroleum reservoirs or the exploration for, or production of, petroleum, on such terms and conditions as the Minister deems fit;
• a petroleum exploration licence, which confers on the licensee the exclusive right to carry on petroleum operations in the area to which the licence relates; and
• a petroleum production licence, which permits a company already licensed for petroleum exploration, and which has made a declaration of commercial discovery to develop and produce petroleum in the area where the discovery was made.

The above-mentioned exploration and production licences are accompanied by a production sharing agreement (PSA), which is entered into with the Government of Guyana, represented by the Minister of Natural Resources. The PSA grants the contractor the sole and exclusive right to conduct petroleum operations within the contract area and the free disposal of its share of petroleum produced. 

Procedure for Issuance of Upstream Licences

Licences as above-mentioned are granted by the Minister of Natural Resources and may be granted through the process of direct negotiation, where the Minister, acting on the directions of Cabinet, determines that special circumstances exist, which, in the national interest or for national security reasons, justify the use of direct negotiation to grant a licence.

Licences may also be granted through competitive tender.

An application fee must be paid, which is determined in the terms of the licence and the attributes of the area in which exploration and production are to take place.

Tender Process

The Minister publishes a notice in the Official Gazette inviting applications in respect of the area specified in the notice, specifying the period in which applications may be made, and specifying the conditions subject to which any application may be made. After receipt of an application, the Minister selects for further negotiation the most substantially responsive bidder.

Qualification Criteria

Applications for licences as above-mentioned must be made by a company. Foreign companies must register in Guyana; however, they are not required to incorporate locally to be eligible for the grant of a licence under the Petroleum Activities Act.

The Petroleum Activities Act 2023 sets out qualification criteria as follows:

• technical qualification criteria, which may vary by geography or water depth; 
• financial qualification criteria commensurate with the financial resources needed to carry out petroleum operations in relation to specified blocks;
• requirements related to the applicant’s safety and environmental policies;
• requirements related to previous performance by the applicant in petroleum operations in or out of the jurisdiction of Guyana;
• the requirement for an applicant to provide a financial undertaking for the payment of a bonus bid; and
• any of the following criteria, such as a signature bonus, exploration criteria and other commercial, climate or social investment considerations, and any other criteria the Minister may deem fit.

The 2023 model PSA sets out the following fiscal terms:

• Royalties: The contractor pays, at the government’s election, either in cash based on the value of the relevant petroleum as calculated pursuant to requisite valuations of crude oil and natural gas, or in kind, a royalty of 10% of all petroleum produced and sold, less the quantities of petroleum used for fuel or transportation in petroleum operations, from all production licences subject to the PSA. 
• Profit Share: “Profit Oil” and/or “Profit Gas” is to be shared between the government and the contractor at a 50:50 rate to each party.
• Excess Profit Payment: Any positive balance in the “Cost Oil” account at the end of the contract term shall not entitle the contractor to indemnifications or refunds.
• Bonuses: The contractor is required to pay a signature bonus, the amount of which is determined through negotiations between the government and the contractor. The signature bonus is not recoverable.
• Rentals: The contractor is required to pay an annual rental fee of USD1,000,000 during the exploration period and appraisal period. These payments must be made on the effective date of the petroleum exploration licence, and on the anniversary date of the petroleum exploration licence so long as the petroleum exploration licence remains in force.
• Development and Social Obligations: PSAs commonly require annual training and capacity-building contributions to support Guyanese participation in the petroleum sector, including technical training, skills development, and institutional strengthening of government agencies responsible for petroleum governance. In addition, contractors are required to provide dedicated funding for environmental and social programmes, which may include community development initiatives, environmental management projects, and other social investments agreed with the government during the life of the agreement.

The 2023 Model PSA stipulates that contractors must pay 10% income tax on their share of profits after deduction of royalties and cost recovery.

Guyana does not have a national oil or gas company with participation or special rights in upstream petroleum operations. The state does not retain a carried interest, back-in right or right to take operations in upstream licences as a matter of law.

Upstream petroleum operations are conducted by private contractors under petroleum licences and production sharing agreements entered into directly with the government of Guyana, represented by the Minister of Natural Resources. The rights and obligations of contractors are governed by the terms of their licences, applicable petroleum agreements, and the Petroleum Activities Act.

Local content obligations applicable to upstream petroleum operations in Guyana are governed by the Local Content Act 2021. The Act applies to all licensees, contractors, subcontractors, and persons engaged in petroleum operations or petroleum-related activities under the Petroleum Activities Act.

Licensees and contractors are required to submit a Local Content Master Plan to the Minister of Natural Resources for approval within four months of the grant of a licence or entry into a petroleum agreement. The Master Plan must set out proposed measures for the use of Guyanese goods and services, employment and training of Guyanese nationals, capacity building, and technology transfer, in accordance with minimum local content levels specified in the Act and accompanying schedules.

Compliance with local content requirements is monitored and enforced by the Ministry of Natural Resources through the Local Content Secretariat. Failure to comply may result in administrative sanctions, including penalties and restrictions on operations, as provided under the Act. There are no separate municipal or regional local content regimes applicable to upstream operations.

Development plan requirements include but are not limited to:

• overview: a description of development objectives and development concept, including alternatives considered, tentative schedule, subsequent development stages, if any, and co-ordination of petroleum activities among other developments if relevant;
• location: a description of the surface outline of the area in which development and production operations will be carried out (the “Development and Production Area”), as well as the location and water depth of the proposed wells and production facilities;
• drilling rig: a description of the offshore drilling unit and associated equipment that will be used to carry out the proposed development drilling activities;
• production facilities: a description of the production platform(s), subsea wellheads and manifolds, pipelines, separation and storage facilities, measurement equipment and other production facilities that will be used to carry out the proposed development and production activities;
• technical and safety measures: a description of technical solutions aimed at preventing and minimising environmentally harmful discharges and emissions, safety management systems, including estimates of maximum quantity of fuels and oil that will be stored in drilling units or production facilities;
• cost and economics: a projection of capital and operating expenditure as well as government and contractor cashflow, including indicators such as project life cycle internal rate of return and breakeven cost at different rates of return;
• operational aspects: a description of operational aspects including maintenance support vessels, onshore support facilities, etc;
• monitoring and supervision: environmental monitoring and supervision of petroleum activities;
• emergency response: oil spill contingency plans and emergency response;
• socio-economic: a description of the socio-economic impact of the proposed development, including proposed local content plans pursuant to the Local Content Act; and
• crude oil valuation: a description of the basket of crudes to be considered for valuation of the crude oil to be produced from the proposed development.

• Exploration Period: There is an initial four-year period with provisions for two optional renewal periods of three years each, totalling a maximum of ten years.
• Production Period: After a commercial discovery, a petroleum production licence is granted for an initial term of 20 years.
• Natural Gas Exception: If the discovery is for a natural gas field, the initial production period is extended to 30 years.
• Minimum Work Programme: Contractors must complete specified activities, such as interpreting 3D seismic data and drilling at least one exploration well, within the initial four-year phase.
• Relinquishment Requirements: Mandatory relinquishment occurs at specific intervals. For example, a contractor must relinquish at least 50% of the contract area at the end of the first exploration phase to qualify for a second-phase renewal.
• Domestic Supply: A contractor operating under a PSA is legally required to meet the country's domestic supply needs. While the current domestic demand is relatively small, this clause is security for future energy needs.
• Abandonment: Decommissioning is discussed in 5.4 Decommissioning Requirements.
• Termination Rights: The Minister may stop production or terminate the agreement if the contractor fails to meet safety or environmental standards, or fails to fulfil work commitments.
• Withdrawal: Either party wishing to exit the agreement must satisfy all existing and future liabilities, including a pro-rata share of decommissioning costs, before the withdrawal is finalised.

Transfer of Interest

Per the provisions of the model PSA, the contractor is not permitted to assign, or transfer in whole or in part, any of its rights, privileges, duties or obligations under the PSA, or any licence issued pursuant to the PSA, to any person, firm or corporation, without the prior written consent of the Minister.

In the event that the Minister does not respond to a request for an assignment of transfer by the contractor within 60 days of receipt of such request, the contractor must send the Minister notice seeking a decision to that effect.

Assignment of the PSA binds the assignee to all the terms and conditions of the PSA and the terms and conditions of the licence issued pursuant to the PSA unless otherwise agreed, and as a condition to any assignment, the assignee must provide an unconditional undertaking to the Minister to assume all obligations by the contractor under the PSA or any licence issued pursuant to the PSA.

The Minister may not unreasonably withhold approval. Consent must be given where:

• the assignment or transfer will not adversely affect the performance or obligations under the PSA;
• the assignment is not contrary to the interest of Guyana;
• the assignment or transfer is to an affiliated company, provided that it remains liable for performance of the obligations; and
• the assignee meets the qualification requirements set out by the Minister during the licensing round; these requirements include:
1. financial competence;
2. technical competence; and
3. an established record of environmental, health, and safety compliance.

The contractor must submit such additional information relating to the intended assignee that the Minister may reasonably require to enable the review of the application.

The contractor may not make an assignment that creates a participating interest representing less than 5% of the total contract for a non-operator interest or less than 35% for an operator interest.

Guyana is not a member of OPEC, or subject to any multinational quotas for oil production rates.

The environmental permit issued by the EPA may stipulate safe operating limits for FPSOs. Limits vary by individual permit.       

Private investors in midstream and downstream interests may apply to the Ministry of Natural Resources for any of the following licences:

• Pipeline Operations Licence: This grants rights of way through national territory for the operation, transportation, and storage of petroleum by pipelines under such terms and conditions prescribed by regulations. Such rights may be incorporated into an approved development plan and conferred by a production licence or petroleum agreement.
• Geological Storage Licence for Carbon Dioxide Storage: This grants the licensee the exclusive right to explore for potential carbon dioxide storage sites in the area specified in the licence, and develop underground carbon dioxide storage sites, inject and store carbon dioxide and undertake operations incidental to carbon dioxide storage as specified in the licence.

The Guyana Energy Agency (GEA) issues the following licences for petroleum and petroleum products:

• import;
• wholesale;
• importing wholesale;
• retail;
• bulk transportation carrier;
• storage; and
• consumer installation.

There are currently no provisions for processing and fractioning or refinery systems.

A pipeline is currently under construction for Guyana’s gas-to-energy project, for which the government has granted approval to the existing holders of the Stabroek Block Petroleum Production Licence and parties to the 2016 Production Agreement, namely Esso Exploration and Production Guyana Limited, CNOOC Nexen Petroleum Guyana Limited and Hess Guyana Exploration Limited.

There is no national monopoly in downstream petroleum activities in Guyana, and private entities may participate in the importation, storage, wholesale, and retail distribution of petroleum products in accordance with applicable licensing and regulatory frameworks.

Midstream and downstream licences in Guyana are issued under different statutory regimes, depending on the nature of the activity. Where midstream or downstream activities fall under the Petroleum Activities Act, the licensing procedure is the same as that applicable to upstream operations, and licences are issued by the Ministry of Natural Resources following an administrative application process.

Downstream activities regulated outside the Petroleum Activities Act, including importation, storage, transportation, wholesale, and retail distribution of petroleum products, are licensed under the Guyana Energy Agency regulatory framework. In such cases, licences are issued by the Guyana Energy Agency in accordance with the procedures set out in its regulations. Depending on the activity, additional approvals, including environmental permits, may also be required.

Midstream and downstream operations in Guyana are conducted on a commercial, contractual basis, with pricing and service terms negotiated between private parties. There is no statutory tariff-setting or price-control regime applicable to midstream or downstream infrastructure, and commercial terms are not subject to prior regulatory approval.

Under the Guyana Energy Agency regulatory framework, licensing and oversight focus on safety, environmental protection, storage, transportation, and operational compliance, rather than the regulation of commercial arrangements. Agreements governing transportation, storage, wholesale, and retail activities typically address capacity, fees, liability, and risk allocation by private contract, subject to compliance with licence conditions and applicable laws.

Midstream and downstream operations in Guyana are generally subject to the ordinary tax regime applicable to companies operating in Guyana. There is no separate hydrocarbon-specific income tax regime for midstream or downstream activities. Operators are subject to corporate income tax, value-added tax (VAT), and other applicable taxes in accordance with the Income Tax Act, the Corporation Tax Act, and the Value Added Tax Act.

Importation, storage, transportation, wholesale, and retail distribution of petroleum products may also attract customs duties, excise taxes, and licence fees, depending on the nature of the activity and the products involved. Tax treatment may vary by licence category and whether petroleum products are imported, stored, or sold domestically.

Tax exemptions or concessions are not automatic for midstream or downstream operators but may be granted under general investment or fiscal incentive legislation, or pursuant to specific agreements with the government. Compliance and administration of taxes are overseen by the Guyana Revenue Authority.

Guyana does not grant special participation or preferential rights to a national oil or gas company in respect of midstream or downstream licences. There is no statutory carried interest, priority access, or exclusive operating role reserved for a state-owned entity in these segments.

Guyana Oil Company Limited (Guyoil) operates in the downstream sector as a state-owned importer and distributor of petroleum products but is subject to the same licensing and regulatory framework as private operators and does not enjoy exclusive or preferential rights.

Local content requirements applicable to midstream and downstream petroleum operations in Guyana are governed by the Local Content Act 2021 to the extent that such activities are conducted under licences issued pursuant to the Petroleum Activities Act. In those circumstances, licensees, contractors, and subcontractors are subject to the same statutory obligations relating to the use of Guyanese goods and services, employment and training of Guyanese nationals, and capacity development.

Where downstream activities are licensed under the Guyana Energy Agency regulatory framework, rather than the Petroleum Activities Act, the Local Content Act does not apply directly. In such cases, local participation is encouraged as a matter of policy and commercial practice, but is not subject to the mandatory minimum local content thresholds prescribed under the Act.

Midstream and downstream licences are issued for defined terms and generally specify the scope of permitted activities and any applicable service obligations, with the structure and classes of service determined by the nature of the licensed activity and commercial arrangements.

There is no general statutory domestic supply obligations imposed on private midstream or downstream operators. Licensees are generally entitled to import, export, transport, store, and sell petroleum products in accordance with the terms of their licences and applicable regulatory approvals, subject to customs and trade requirements.

Licensees bear operational, environmental, and safety risks associated with their activities, including liability for pollution, accidents, and regulatory non-compliance. Licences may be suspended, amended, or revoked for material breach or failure to comply with applicable laws. Upon expiry, termination, or cessation of operations, licensees are required to abandon and decommission facilities and restore affected areas in accordance with licence conditions and applicable standards.

Guyana does not confer independent condemnation or eminent domain powers on private investors constructing midstream or downstream petroleum infrastructure. The power to compulsorily acquire land or interests in land is vested exclusively in the state and may only be exercised in accordance with applicable legislation and constitutional requirements.

Where petroleum infrastructure requires access to land or rights of way, private investors must generally secure such rights through voluntary agreement with landowners. If compulsory acquisition is considered necessary for a public purpose, it must be undertaken by the state, with affected persons entitled to compensation in accordance with law. Private investors may benefit from such acquisitions where authorised, but they do not exercise eminent domain powers directly.

Transportation of hydrocarbons in Guyana is regulated at the national level. Pipeline transportation associated with upstream petroleum operations is governed by the Petroleum Activities Act and administered by the Ministry of Natural Resources, while downstream transportation of petroleum and petroleum products, particularly by road and in bulk quantities, is regulated under the Guyana Energy Agency (Petroleum and Petroleum Products) Regulations 2024 and administered by the Guyana Energy Agency. Environmental oversight is exercised by the Environmental Protection Agency.

Guyana is a unitary state, and there is no distinction between intra-state and inter-state pipeline regulation. There is no regulated access or tariff-setting regime for hydrocarbon transportation infrastructure, and transportation costs and access arrangements are determined by private contract, subject to applicable licensing, safety, and environmental requirements.

Guyana does not impose a statutory open-access regime for privately constructed midstream or downstream petroleum infrastructure. Neither applicable licences nor national law require infrastructure owners to grant third-party access as of right.

Any third-party access is governed by private commercial agreements, with capacity, tariffs, and service terms negotiated contractually and not subject to regulated pricing or mandatory unbundling. There are no statutory restrictions on the same entity owning or operating assets across multiple segments of the petroleum value chain, provided applicable licensing, safety, and environmental requirements are met.

There are no general statutory restrictions on the sale of petroleum products into the local market in Guyana. Sales of petroleum products are permitted subject to compliance with applicable licensing, safety, and regulatory requirements administered by the Guyana Energy Agency.

Entities engaged in the importation, wholesale, retail distribution, storage, or transportation of petroleum products must hold the relevant licences under the Guyana Energy Agency regulatory framework. Licence conditions may impose operational, safety, storage, and reporting obligations, but do not generally restrict pricing, volumes, or the identity of customers.

There are no prohibitions on concurrent ownership across different segments of the downstream value chain, and petroleum products may be sold directly to consumers or through intermediaries, provided that the applicable licensing and regulatory requirements are satisfied.

The export of crude oil and petroleum products in Guyana is regulated at the national level and is permitted subject to compliance with applicable licensing, contractual, and customs requirements. Exports of crude oil produced under upstream petroleum licences are authorised in accordance with the terms of the relevant petroleum licence and production sharing agreement and are not subject to general export prohibitions, quotas, or state marketing monopolies. There are no specific export taxes or duties imposed exclusively on crude oil or petroleum products.

Imports and exports of petroleum products for downstream purposes are regulated under the Guyana Energy Agency regulatory framework and require the appropriate import, wholesale, storage, or distribution licences, together with compliance with customs requirements administered by the Guyana Revenue Authority. Guyana does not currently produce or export LNG, and there is therefore no LNG-specific export approval regime in force (see 6.2 Energy Transition and Oil and Gas Development). There is no separate authorisation regime for cross-border pipelines and no domestic sanctions regime affecting petroleum exports (see 4.2 Sanctions).

Midstream and downstream operations and assets in Guyana are transferred through private asset or share transactions, subject to regulatory approval. Share transfers in licensed entities generally do not require re-issuance of licences, while asset or operational transfers require regulatory consent and the transfer or re-grant of relevant licences. Where licences are issued under the Petroleum Activities Act, any assignment or transfer requires prior approval of the Minister of Natural Resources.

Under the Guyana Energy Agency framework, wholesale, import, storage, bulk transportation (including transportation vehicles or vessels), and consumer installation licences are not transferable and must be newly obtained by an incoming owner, while retail licences may be transferred by amendment with GEA approval. Transactions commonly raise issues relating to regulatory timelines, environmental permit continuity, compliance history, and allocation of ongoing safety and environmental obligations.

The Investment Act 2004 sets out the rules and protections applicable to foreign investments in Guyana, including in hydrocarbons. This Act provides for non-discrimination between domestic and foreign investors and among foreign investors from different countries.

Investors are prevented from investing in or operating investment enterprises that are prejudicial to national security or detrimental to the environment or public health, or which contravene the laws of Guyana.

The Act does not provide for any special incentives or protections for foreign investment that may be applicable under general foreign investment laws. Investors may benefit from incentives contained in individual contracts with the government.

With respect to expropriation, the Act provides that the government shall not compulsorily acquire or take possession of any investment enterprise or any asset of an investor, except:

• for a purpose which is in accordance with the laws of Guyana;
• on a non-discriminatory basis;
• in accordance with procedures provided by law;
• where there is prompt payment of adequate compensation together with interest calculated from the date of acquisition or taking possession of the investment enterprise or asset to the date of payment; and
• where there is a right of access to the High Court by any person claiming such compensation for the determination of any interest in or right over the investment, and the amount of compensation.

While the Act does not contain stability provisions, the 2016 Petroleum Agreement between the Government of Guyana and ExxonMobil, CNOOC and Hess contains an express stability clause at Article 32.

The Act provides for recourse to the International Centre for Settlement of Investment Disputes (ICSID) in the event of a dispute. In addition, Guyana is party to the following Bilateral Investment Treaties (BITs):

• Brazil-Guyana BIT, 2018 (not signed into force);
• Guyana-Kuwait BIT, 2010 (not signed into force);
• Guyana-Indonesia BIT, 2008 (not signed into force);
• Guyana-Korea Republic BIT, 2006 (in force);
• Guyana-Switzerland BIT, 2005 (in force);
• China-Guyana BIT, 2003 (in force);
• Cuba-Guyana BIT, 1999 (not signed into force);
• Germany-Guyana BIT, 1989 (in force); and
• Guyana-United Kingdom BIT, 1989 (in force).

Guyana is also party to the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards.

Guyana does not maintain a domestic sanctions regime specifically targeting oil and gas investments or counterparties. Instead, Guyana gives effect to UN Security Council sanctions through its AML/CFT framework, including targeted financial sanctions applicable to designated persons and entities.

While Guyana law does not generally prohibit oil and gas investments in particular foreign jurisdictions, transactions are often affected in practice by foreign sanctions regimes (such as US, EU, or UK sanctions) due to the involvement of international banks, insurers, and payment systems. As a result, market participants typically conduct sanctions screening and include contractual protections, but there is no separate Guyana-specific authorisation regime or sector-specific sanctions framework.

The Environmental Protection Act is the principal source of environmental law, and the Environmental Protection Agency (EPA), established through the Act is the principal environmental regulator, having jurisdiction over upstream, midstream and downstream operations in Guyana’s territory, including the exclusive economic zone.

The EPA is responsible for approving environmental impact assessments (EIAs), issuing environmental permits for oil and gas projects, and for monitoring activities of permit holders.

Before commencing a major hydrocarbon project, an EIA must be conducted and approved by the EPA. On approval of the EIA, the EPA issues an environmental permit.

EIA Procedure

At the developer’s cost, before any EIA is begun, the EPA must publish in at least one daily newspaper a notice of the project and make available to members of the public the project summary.

Members of the public have 28 days from the date of publication to make written submissions to the EPA setting out those questions and matters that they require to be answered or considered in the EIA.

During the course of the EIA, the developer and the person carrying out the EIA must consult members of the public, interested bodies and organisations, and provide to members of the public on request, and at no more than the reasonable cost of photocopying, copies of information obtained for the purpose of the EIA.

The developer and the person carrying out the EIA must submit the EIA together with an environmental impact statement to the EPA for evaluation and recommendations and publish a notice in at least one daily newspaper confirming that the EIA and environmental impact statement have been submitted to the EPA. Members of the public have 60 days from the date of publication of such notice to make such submissions to the Agency as they consider appropriate.

Approval Requirements

The following information is required for every EIA:

• a description of the project, including in particular:
1. the geographical area involved, the physical characteristics of the whole project and the land-use requirements during the construction and operational phases, including plans, drawings, and models;
2. the main characteristics of the production process, including the nature and quantity of the materials used, plans, drawings and models;
3. an estimate, by type and quantity, of expected contaminants, residues, and emissions (water, air and soil pollution, noise, vibration, light, heat and radiation) resulting from the operation of the proposed project; and
4. the length of time of the project;
• an outline of the main alternatives studied by the developer and an indication of the main reasons for his choice, taking into account the environmental factors;
• a description of the likely significant effects of the proposed project on the environment resulting from:
1. the existence of the project;
2. the use of natural resources; and
3. the emission of contaminants, the creation of nuisances and the elimination of waste, and a description by the developer of the forecasting methods used to assess the effects on the environment;
• an indication of any difficulties (technical deficiencies or lack of knowledge or expertise) encountered by the developer in compiling the required information;
• a description of the best available technology;
• a description of any hazards or dangers that may arise from the project and an assessment of the risk to the environment;
• a description of the measures that the proposed developer intends to use to mitigate any adverse effects and a statement of reasonable alternatives (if any), and reasons for their rejection;
• a statement of the degree of irreversible damage, and an explanation of how it is assessed;
• an emergency response plan for containing and cleaning up any pollution or spill of any contaminant;
• the developer’s programme for rehabilitation and restoration of the environment; and
• a non-technical summary of the above-mentioned information.

Environmental, Health and Safety (EHS) Requirements

The Occupational Safety and Health Act (OSHA) addresses health and safety matters separately from environmental matters, which are addressed in the environmental protection legislation. The OSHA applies to every industrial establishment and to all owners and occupiers thereof and employees and workers therein, including offshore development.

Offshore operators bear regulatory and civil liability for pollution incidents, environmental damage, and health and safety breaches arising from their operations, and there are no statutory caps on liability for offshore environmental harm. As a condition of environmental permitting and licence approval, operators are typically required to maintain insurance or other financial security sufficient to cover spill response costs, remediation, and third-party claims, including liabilities arising from major offshore incidents.

Decommissioning Plan (Scope and Timing)

On the expiration, surrender or termination of a petroleum exploration licence, or a petroleum production licence, or cessation of petroleum operations in an area, the licensee is solely responsible for the removal of all property used in petroleum operations from the affected area, subject to any arrangements for future use of any property under an approved decommissioning plan; and remediation of the affected area in accordance with best international industry standards and practices.

The licensee is required to submit a plan and budget to the Minister of Natural Resources for approval.

With respect to timing, the Petroleum Activities Act stipulates that a decommissioning plan must be submitted no later than two years before the expiration of a licence, relinquishment of part of the licence area, or anticipated cessation of production.

In case of surrender or cancellation of licence earlier than scheduled expiration, the decommissioning plan must be submitted no later than 90 days after the determination of the licence.

The holder of an exploration or production licence must permanently plug and abandon all wells in the licence area within one year of the expiration of the licence, cessation of petroleum operations, or termination of said licence. Permanent plugging and abandonment operations must commence after six months of inactivity at the production site in accordance with best international industry standards and practices. The plan may include options for:

• the complete and total removal of wells, facilities and assets used in the conduct of petroleum operations;
• partial removal, removal in place, or decommissioning of offshore platforms and other facilities for use as reefs or for any other applicable purpose;
• reuse or relocation of the facility for use in petroleum operations at another location; or
• alternative use of petroleum infrastructure for purposes other than petroleum operations.

Preliminary Decommissioning Plan (Scope and Timing)

A preliminary decommissioning plan must be included in the development plan submitted at the application stage. The plan at this stage is required to include:

• identification of the petroleum production licence and structures and facilities being decommissioned/abandoned, including information related to location, water depth, installation date, age of facilities and proposed decommissioning date;
• a detailed description of the decommissioning operations to be undertaken by the licensee;
• a description of the proposed methods of removal and disposal;
• an analysis of alternative removal and disposal methods considered in preparing the plan, including cost estimates and the rationale for selecting the preferred methods;
• description of any recent biological and archaeological surveys in the vicinity of the structure and plans to protect archaeological and sensitive biological features during removal operations, including an assessment of the environmental impacts of the removal operations and procedures and mitigation measures that are proposed to minimise such impacts;
• an environmental impact assessment in compliance with the Environmental Protection Act; and
• any other matter that may be prescribed by regulation or direction of the Minister.

Approval

The Minister decides whether to approve or reject the decommissioning plan, based on the following considerations:

• safety and environmental factors;
• technical and economic aspects;
• disposal alternatives;
• impact on development of other petroleum operations, or sources of energy;
• impact on local communities, fisheries and agriculture; and
• other national interests.

Decommissioning Fund

The licensee/contractor is required to establish a decommissioning fund in order to secure the implementation of activities included in the preliminary decommissioning plan and budget, as well as the final approved decommissioning plan.

The licensee/contractor must initiate contributions to the decommissioning fund when cumulative production from the field or fields associated with the decommissioning in question has reached 30% of the proven reserves.

Deposits must be made in equal annual instalments based on the initial and subsequent updates of the decommissioning cost estimates provided by the contractor in its preliminary decommissioning plan. The annual contribution to the decommissioning fund shall be such that the full cost of decommissioning is paid to the fund two years prior to the anticipated commencement of decommissioning and abandonment activities. 

Non-Owner and Prior-Owner Liability

Non-owner and prior-owner liability may arise where a transfer of responsibility for decommissioning is permitted by the Minister of Natural Resources, who may postpone the scheduled decommissioning of facilities and infrastructure following the expiry or termination of a petroleum production licence.

Where decommissioning of petroleum installations is postponed, the responsibility and liability for decommissioning of facilities at the end of their useful life may be transferred in whole or in part to the beneficiary of alternate use.

Where the responsibility and liability for decommissioning of facilities is transferred in whole or in part, the responsibility for the balance of the decommissioning fund is transferred to the beneficiary of alternate use.

The prior owner is responsible for decommissioning obligations that accrued before the alternate use authorisation, as well as for any decommissioning obligations that accrue subsequently to the Minister’s decision to postpone, to the extent that they relate to continued use of the facility by the prior owner.

Guyana does not have standalone climate change legislation. There is no carbon tax or carbon-pricing regime, no cap-and-trade or emissions trading system, and no statutory limits on greenhouse gas or methane emissions from oil and gas infrastructure, nor any climate-specific restrictions on flaring or venting.

Climate-related obligations affecting the oil and gas sector arise indirectly through the general environmental framework, principally under the Environmental Protection Act (Chapter 20:05), and are subject to oversight by the Environmental Protection Agency. All major petroleum projects are subject to EIAs, which must assess air emissions arising from petroleum operations. Climate considerations are therefore addressed on a project-by-project basis through environmental permitting and associated operational and monitoring conditions imposed by the Environmental Protection Agency.

At the policy level, climate change mitigation and adaptation are co-ordinated by the Office of Climate Change, which leads the development and implementation of national climate policy across government. Key policy instruments include the Low Carbon Development Strategy (LCDS) and the National Climate Change Policy and Action Plan (NCCPA), which frame the use of oil revenues, including through the Natural Resource Fund, to support climate resilience, sustainable development, and energy transition objectives. These instruments guide government decision-making and stakeholder engagement but do not impose direct, enforceable emissions limits on oil and gas operators.

Guyana is a unitary state in which authority over oil and gas development is exercised by the central government. Licensing, regulation, and approval of petroleum activities are vested in national authorities under legislation such as the Petroleum Activities Act and the Environmental Protection Act, and local government bodies do not have independent powers to prohibit or veto nationally authorised oil and gas projects.

Regional and neighbourhood democratic councils may exercise limited administrative functions within their jurisdictions, including participation in land-use planning and community-level matters, but their role in oil and gas development is primarily consultative. Local authorities and communities participate mainly through the environmental impact assessment process, where submissions may be made and concerns raised, but final decision-making authority remains with the national regulators.

There are no specific energy transition laws in Guyana. The Low Carbon Development Strategy (LCDS) is the policy framework for sustainable development, and addresses energy transition.

With respect to oil production, the government’s policy position on energy transition, as stated in the National Climate Change Policy and Action Plan is that it supports the achievement of Net Zero by the 2050 target, including the more short-term target of a 28% reduction in global oil demand by 2030. At the same time, fairness requires that the global oil industry – which is worth USD3-4 trillion every year – should not just be for the benefit of incumbents, particularly when those incumbents are already very wealthy.

If Guyana were to prematurely forego oil and gas revenues, it would simply mean a continuation of a de facto monopoly where incumbents would meet demand and benefit from the industry which will be worth trillions of dollars for decades to come. It would also mean that Guyana would remain poor and unable to invest in lifting the living standards of its people.

Since 2009, Guyana has supported two main global policies:

• a global price on carbon, whether through a global carbon tax regime or a global carbon market; and
• the removal of subsidies for fossil fuel production.

Gas-to-Energy Project

Guyana has estimated recoverable natural gas reserves of over 17 trillion cubic feet, while electricity generation is currently reliant primarily on heavy fuel oil (HFO). To utilise associated gas from offshore production, the government is developing a gas-to-energy project involving a pipeline from the Stabroek Block to an onshore natural gas liquids (NGL) facility to support domestic power generation and industrial development, including fertiliser production. The project has progressed significantly and is expected to be completed by the last quarter of 2026.

There is no commercial deployment of oil and gas assets for carbon capture and storage (CCUS), hydrogen, renewable natural gas, or sustainable aviation fuel, and no dedicated regulatory framework governing such activities. Greenhouse gas mitigation is addressed primarily through project-specific environmental permitting, rather than economy-wide regulation, and Guyana does not operate a carbon tax, cap-and-trade system, or emissions credit market, nor does it provide statutory incentives specifically targeted at oil and gas-based energy transition projects.

To the extent that global energy transition towards renewables affects demand for oil and gas, energy transition will affect traditional oil and gas development in Guyana. Per the government’s policy position on oil production, it is intended to maximise the benefit of exploitation of the resource for the development of the country.

Shale, coal and any substance that may be extracted from shale or coal are specifically omitted from the definition of petroleum in the Petroleum Activities Act. Therefore, petroleum licences do not permit the extraction of unconventional upstream interests.

There are no special laws or regulations relating to upstream development of unconventional upstream interests.

LNG is not currently produced in Guyana, but the possibility is being explored by ExxonMobil. There is currently no special scheme or regulatory regime relating to LNG projects. There may be a regulatory regime for LNG contained in the pending Regulations of the Petroleum Activities Act, which are still in the draft stage.

Quality of Guyana’s Oil

A notable aspect of Guyana’s oil industry is the actual quality of the oil being produced. ExxonMobil, one of the major operators in the local industry, has described Guyana’s oil as “high-quality”, light sweet crude, as it has low sulphur content and high API gravity.

API (American Petroleum Institute) gravity is the scale used to measure density of petroleum products and classifies crude oil as light, medium, or heavy. Light crudes are easier and more cost-efficient to refine. Complexity and cost of refining increase with heavier crudes.

Since light sweet crude is used for processing into gasoline, jet fuel, and other high-quality petroleum products, there is high demand and price for it.

In May 2025, Parliament passed the Oil Pollution Prevention, Preparedness, Response and Responsibility Bill, and the government is working on completing the accompanying regulations that will operationalise those laws.

Other significant new legislation in the oil and gas sector is:

• the Local Content Act, passed on 29 December 2021;
• the Natural Resource Fund Act, passed on 29 December 2021;
• the Petroleum Activities Act, passed on 9 August 2023; and
• the Guyana Energy Agency (Petroleum and Petroleum Products) Regulations, passed on 27 April 2024.