Bloomberg reports: Oil curse hanging over Guyana’s head

Jul 31, 2026 News

…says country falls short on structuring tax and contract terms to capture full value of its resources

(Kaieteur News) – Bloomberg, an American media powerhouse renowned for business and markets news, data and analysis to name a few has warned that the oil curse is hanging over the world’s fastest growing economy with Guyana falling short in several key parameters laid out in the Natural Resource Charter.

In a July 29 report, Bloomberg’s Juan Spinetto details his recent visit to Georgetown where his attendance of the nation’s Independence Flag Raising Ceremony was flatly described as a “fiasco…more than an embarrassment.”

Shifting attention to the nation’s resource management, Bloomberg assessed Guyana’s trajectory against dozens of benchmarks laid out in the Natural Resource Charter, a set of principles developed in 2010 by economists and policy experts to help resource-rich countries turn commodity booms into lasting prosperity.

Bloomberg reports: Oil curse hanging over Guyana’s head

Bloomberg captured “shanty dwellings” in Guyana, the World’s fastest growing economy.

That analysis found that Guyana meets four principles on accountable public decision-making, investing revenue for citizens, smoothing revenue volatility, and international harmonisation. Additionally, it partially fulfills those on building an inclusive national strategy, state enterprise accountability, public spending efficiency and diversification.

The report however highlights that Guyana “falls short on transparent and competitive rights allocation, local content participation, upholding the highest corporate environmental, social and human rights standards, and structuring tax and contract terms to capture the full value of its resources.”

Notably, this largely corresponds with the findings of the 2021 Resource Governance Index, a diagnostic tool created by the New York-based Natural Resource Governance Institute to assess how commodity producers manage their resources.

Bloomberg highlighted that Guyana was placed in the “weak” performance category, with an aggregated score of 56 out of 100. “As a new producer, Guyana is still developing the institutional framework to successfully govern its oil and gas sector. With weakness evident in value realisation, revenue management and the overall enabling environment, the government should prioritise the development of a robust resource governance framework,” the report concluded.

It was explained that Guyana’s biggest gaps are institutional. To this end, it was suggested that the country establish a state-owned oil company that could help the government capture a larger share of revenue from oil. Notably, the report cautioned that doing so before the necessary institutions are in place risks creating another vehicle for waste, political favoritism and graft.

Further, Bloomberg said, “executing megaprojects requires meticulous, long-term planning, something that Guyana isn’t yet fully equipped to do.”

It pointed to the US$2B Gas-to-Energy (GTE) project as a prime example, the country’s largest infrastructure development in the country’s history. The report highlighted that the massive project is running about two years behind schedule and has seen costs escalate after encountering major soil challenges.

It also noted the construction of the specialised Paediatric and Maternal Hospital, one of the 12 state-of-the-art hospitals government hopes to complete by 2028, which is delayed, reportedly because of changes of ownership in the construction company.

When it comes to government corruption, Bloomberg said that this remains a recurring complaint. In fact, Guyana ranks 84 out of 182 nations in Transparency International’s Corruption Perceptions Index, with little improvement in recent years.

Notably, it explained that government has so far navigated corruption allegations largely unscathed, but a new controversy has raised the political stakes. In early July, Leader of the We Invest in Nationhood (WIN), Azruddin Mohamed expose President Ali’s ownership of 150-acre ranch on the Linden Highway, raising questions of conflicts of interest and personal enrichment, prompting the Leader of the Opposition to call on the Head of State to resign.

The President later acknowledged owning the property but explained it was acquired prior to him taking office and has been properly disclosed to the authorities. To this end, the report said, “Even so, the lingering question for many is how members of the political elite managed to amass such vast wealth in such a short time. Meanwhile, Mohamed, who is one of Guyana’s richest persons, and his father have themselves been sanctioned by the US and indicted on allegations that they evaded millions of dollars in taxes and royalties through fraudulent gold exports and related money-laundering schemes.”

For his part, the President told the media entity of his plans to turn Guyana into a major global energy supplier while diversifying the economy. His futurist vision encompasses everything from AI investment, digitisation and technology to producing Netflix Inc. series.

“All of these areas are working together in future-proofing the economy, so the economy is not dependent in any way, shape or form on one area of growth…it is broad. It is highly integrated, and it’s what I would say progressive,” Ali told Bloomberg.

The news outlet pointed out that while the President’s plans look “impressive on paper” much of it sounds “like a carefully rehearsed TED Talk.”

“It’s fair to wonder whether delusions of grandeur have overtaken execution. Grand visions usually stumble where they matter most: implementation. Guyana’s weak bureaucracy, fragile institutions and shortage of skilled workers pose real obstacles to its president’s sweeping plans,” the report cautioned as it went on to note that the well-documented pathogenesis of the resource curse offers ample reason for skepticism.

Meanwhile, an ExxonMobil spokesperson defended the lopsided oil contract with Guyana. The company stated, “The agreement was negotiated with the Government of Guyana and reflected competitive terms at a time when there were significant exploration, technical and price risks.”

WIN Opposition Member of Parliament, Odessa Primus was also featured in the report. She said, “The contract is not necessarily in the best interest of Guyanese… Exxon has to look out for their best interest. And they have done so very well. Clearly whoever’s getting paid over there to negotiate these contracts deserves a raise to pay.”

Bloomberg said, “Yet if this unprecedented flow of money and profits fails to translate into better living standards, Exxon will likely become a target of public frustration. Fairly or not, many Guyanese view Exxon as a power behind the scenes, giving the company the unofficial role of arbiter of modern Guyana. That perception could fuel public resentment and demands to rewrite the favorable contract the company secured in 2016. Production-sharing contracts in neighboring Suriname generally impose a 6.25% royalty on gross oil output; Guyana charges just 2%.”

Discover more from Kaieteur News

Subscribe to get the latest posts sent to your email.

Bloomberg, contract terms, Guyana Oil, oil curse, structuring tax

One thought on “Bloomberg reports: Oil curse hanging over Guyana’s head”

Martin August 1, 2026 at 11:53 am

Shockingly, there are ‘similar ‘shanty dwellings’ in parts of California where the homeless roamed the streets coupled with abuse of animals!!!!

Comments are closed.

Latest News