Revenue Generated from the Extractive Industries
Total revenues received from the extractive sector amounted to GYD 93.77 billion in FY 2020. Revenues collected by the Ministry of Natural Resources (MNR) and Guyana Revenue Authority (GRA) accounted for 44% and 30% respectively of the total revenue streams generated by the sector, followed by those collected by the Guyana Gold Board (GGB) accounting for 15% of total extractive industry revenues. The breakdown of revenues is set out in the table below.
EEPGL started oil production on 20 December 2019. The first lift was carried out on 19 February 2020. The total increase of GYD 54.59 billion in total extractive revenues in table 4 above is composed mainly of the following:
– GYD 41.36 billion of revenues relating to the royalties and profit oil that MNR started collecting from the oil and gas sector during the fiscal year 2020; and
– GYD 8.42 billion increase of GRA’s revenues. This is mainly due to the tax revenues generated from EEPGL activity which increased from GYD 12.26 in 2019 to GYD 21.62 billion in 2020;
– GYD 4.02 billion increase in GGB’s revenues resulting mainly from the increase of the gold production value which largely compensated the decrease in gold production volumes.
Total revenues from the extractive sector increased by GYD 54.59 billion as set out in table 5. This is mainly due to the drastic increase of the oil and gas sector’s revenues by GYD 51.62 billion. The mining sector’s revenues increase of GYD 2.96 billion is due to the increase of gold production value during 2020.
Contribution to Guyana’s economy
Based on the economic data presented in Section 3.13 of the report, the contribution of the different sectors can be summarised as follows:
According to the Bureau of Statistics (BoS), the Gross Domestic Product (GDP) from forestry, fisheries, mining, oil and gas sectors for FY 2020 amounted to GYD 329.96 billion and accounted for 31.13% of total GDP. The contribution of all four sectors to the Government’s revenue amounted to GYD 93.78 billion accounting for 37.37% of the total domestic revenues in the FY 2020. The value of exports from the extractive sectors amounted to GYD 471.71 billion accounting for 84.69% of the total exports of the country in the FY 2020. In accordance with the Guyana Labour Force Survey covering the year 2020, there were 264,862 people employed in Guyana, of whom 40,952 were employed in the forestry, fisheries, mining, oil and gas sectors, representing 15.46% of total employment in the FY 2020.
Production Data
Oil and Gas Sector
Guyana became an oil producing country on 20 December 2019 when the floating production, storage and offloading (FPSO) vessel Liza Destiny began producing oil offshore from Guyana. The only company producing oil and gas during 2020 was Esso Exploration and Production Guyana Limited (EEPGL):
Mining Sector
The table below sets out the production quantities and values during FY 2020 by mineral type:
Forestry Sector
The table below sets out the production quantities and values during the fiscal years 2018 to 2020:
The overall production of the forestry sector increased slightly by 7% during 2020 after a decrease in forestry production value of 9.5% in the prior year 2019. The total production value is correlated with logs production which is the highest valued forest produce and which increased by 7% during 2020.
Fisheries Sector
The table below details the production quantities and values during the fiscal years 2018 to 2020:
The production of fishes and shrimps decreased by 10% and 14% respectively. This is due mainly to the restrictions of the COVID-19.