Oil Exports from Guyana Surge by 74.3% in First Half of 2024

Guyana's oil exports soared by 74.3% in the first half of 2024, generating US$9.4 billion in revenue from over 113 million barrels of oil. The boost is primarily due to the addition of the Prosperity Floating Production, Storage, and Offloading (FPSO) vessel, which began production in late 2023. The oil sector’s rapid growth continues to be a major driver of foreign currency earnings for the country.

$6.9 Billion in Contracts Awarded to Small Contractors in Berbice

The Government of Guyana has awarded over $6.9 billion in contracts to 389 small contractors in Region Six, Berbice. The contracts, announced during Vice President Dr. Bharrat Jagdeo’s visit, will focus on road upgrades. A new rating system allows smaller contractors to secure work without the need for the traditional bidding process, fostering opportunities for growth. An additional $7 billion in contracts will soon be tendered for larger infrastructure projects. Jagdeo emphasized the need for quality work and warned contractors against engaging in bribery, noting that poor performance could lead to being blacklisted from future projects.

Business Opportunities Based On Today’s Developments

1. Small Enterprises (SMEs)

Waste Removal and Recycling Services

The government’s push to stop hazardous dumping of derelict vehicles and the Public Works Ministry’s efforts to remove debris from roadways highlights a clear need for small businesses in waste management and recycling. SMEs could offer:

• Vehicle Recycling and Salvage: Set up small-scale salvage operations to collect, dismantle, and recycle derelict vehicles.

• On-Demand Waste Removal: Services targeting residential areas, especially regions prone to illegal dumping, offering affordable, timely pickups.

• Partnership with Local Government: Engage in contracts with local authorities to help remove waste or offer community-focused recycling initiatives.

Healthcare Diagnostics

With the launch of new molecular diagnostics and DNA barcoding labs at the University of Guyana, small businesses could seize the opportunity to support the healthcare industry.

• Mobile Diagnostic Clinics: Set up mobile diagnostic services to take healthcare closer to underserved regions using the university's advanced technology.

• Laboratory Supplies: Provide supplies such as test tubes, reagents, and disposable medical equipment to local labs or universities.

• Training Programs: Start small-scale programs for healthcare professionals and students focusing on new diagnostic technologies.

Energy and Generator Maintenance Services

The commissioning of a new generator at the Region Two RDC to combat blackouts suggests that energy security is a pressing issue. SMEs can step in by:

• Generator Sales and Maintenance: Supply and service backup generators for businesses and government offices, especially those in remote regions.

• Solar Panel Installation: With the government focused on sustainability, small companies can offer solar installation services as an eco-friendly alternative to generators.

Oil and Gas Support Services

With the significant rise in oil production and exports, small businesses can enter niche service sectors supporting the industry:

• Local Catering Services: Provide catering to oil rigs and associated infrastructure projects.

• Safety Equipment Suppliers: Offer safety gear and protective equipment required on oil fields and processing plants.

2. Medium Enterprises (MEs)

Infrastructure Development and Support

The government’s $6.9 billion investment in road contracts in Berbice, alongside upcoming tenders for larger projects, offers opportunities for medium-sized construction and engineering firms.

• Road Repair and Maintenance: Position your company as a specialized provider for long-term road maintenance contracts.

• Construction Material Suppliers: Supply asphalt, cement, and other essential materials to small contractors working on government projects.

Electricity and Energy Storage Solutions

With the installation of a new generator at the RDC, there is potential for medium-sized enterprises to provide advanced energy solutions.

• Renewable Energy Systems: Establish medium-scale solar and wind energy farms to power public institutions and corporate offices. This can be paired with energy storage solutions for added reliability.

• Energy Auditing Services: Offer services to assess energy consumption in government offices and propose efficiency measures or alternate energy solutions.

Biodiversity and Environmental Consulting

The launch of DNA barcoding and biodiversity-focused labs, along with the increasing global focus on conservation and biodiversity, opens a niche for environmental consultants.

• Environmental Impact Studies: Position your business to conduct studies for large projects like oil and gas developments, especially in ecologically sensitive areas.

• Biodiversity Conservation Services: Develop a firm offering conservation strategies, habitat restoration, and environmental audits, particularly for companies seeking to enhance their Corporate Social Responsibility (CSR) efforts.

Construction and Facility Management Services

As new infrastructure projects emerge, such as the planned world-class hockey field at St. Stanislaus College, MEs can offer:

• Facility Management: Provide ongoing management and maintenance services for new sports facilities, academic buildings, and other large projects.

• Construction Services: Participate in mid-sized construction projects like sports fields, school expansions, or new labs and research centers.

3. Large Enterprises (LEs)

Oil and Gas Expansion

With oil exports up 74.3% in the first half of 2024, large enterprises have vast opportunities in the upstream and midstream oil and gas sectors.

• Energy Infrastructure Development: Invest in the expansion of processing facilities, pipelines, and storage for crude oil exports.

• Joint Ventures: Partner with international energy companies to leverage Guyana’s growing status as a major oil producer. This could include drilling, infrastructure, or refining partnerships.

Large-Scale Renewable Energy Projects

Given the government’s focus on securing energy and environmental sustainability, large companies can explore renewable energy investments.

• Utility-Scale Solar or Wind Farms: Build renewable energy farms to complement the existing energy grid, reducing dependence on oil-fired plants.

• Public-Private Partnerships (PPP): Work with the government to fund and build large renewable energy projects, particularly those that support the oil and gas industry’s growing energy demands.

Research and Development in Biodiversity

With the opening of new labs and President Ali’s call for biodiversity innovation, large corporations can invest in biodiversity research.

• Corporate Investment in Biodiversity Credits: Establishing or investing in biodiversity credits aligns with future environmental regulation and can open up new revenue streams while boosting corporate sustainability efforts.

• Pharmaceutical R&D: Leverage the biodiversity studies from these new labs to explore new pharmaceutical products derived from Guyana’s vast ecological resources.

Construction and Infrastructure Development

The government's significant focus on infrastructure (both urban and rural), oil-related infrastructure, and sporting facilities presents large opportunities for:

• Mega Construction Projects: Pursue larger tenders for roads, sports complexes, and research institutions.

• PPP in Infrastructure: Partner with the government on large-scale projects, including building energy-efficient public offices, modern sporting arenas, or expanding school infrastructure.

Advanced Healthcare Services

Given the country’s investment in new labs and diagnostic technologies, large healthcare providers can:

• Private Healthcare Facilities: Invest in building private hospitals or specialty clinics offering high-end diagnostics, leveraging the new university lab facilities for advanced testing.

• Telemedicine Platforms: With the focus on improved healthcare infrastructure, large firms can establish telemedicine services connecting remote regions to medical experts.

Final Thoughts:

Guyana’s rapidly evolving economy, fueled by oil revenues, infrastructure spending, and a government focus on innovation, offers ample opportunities across industries. For small businesses, niche services such as waste management, mobile diagnostics, and generator maintenance are viable entry points. Medium-sized enterprises can target infrastructure, energy, and environmental consulting, while large enterprises should pursue oil and gas expansion, renewable energy, and large-scale construction projects.

A strategic approach across these levels involves identifying synergies with government initiatives and leveraging partnerships, particularly in sectors like energy, infrastructure, and biodiversity conservation.

Side Hustle Ideas Based On Today’s Developments

1. Specialized Logistics for Small Contractors

With the government signing $6.9 billion worth of contracts in Region Six for small contractors and road upgrades, there is a growing need for logistics services to support these contractors. A side hustle could involve offering specialized logistics or transport solutions for contractors, such as delivering construction materials, tools, and machinery. This could be done using a personal vehicle or a small fleet and would require coordination with contractors who may not have the resources to manage deliveries effectively.

2. Renewable Energy Consultation and Installation

The push for sustainable infrastructure, including the installation of an $8 million standby generator by the Region Two RDC to combat blackouts, signals a growing demand for energy solutions. People with technical knowledge or a network of electricians could start a side hustle offering renewable energy consultations or solar panel installation services. This would align with the broader trend of sustainability and energy resilience, which is critical for both businesses and residential areas in Guyana.

3. Biodiversity and Eco-Tourism Product Development

With the government’s increasing focus on biodiversity, driven by the upcoming Biodiversity Alliance in 2025, there is a unique opportunity to develop eco-friendly tourism products. A side hustle could involve creating guided tours, educational workshops, or nature-based products that showcase Guyana’s rich biodiversity. This could appeal to both locals and international visitors, leveraging Guyana's growing reputation as a nature-friendly destination while benefiting from the expanding eco-tourism market.

These side hustles align with the country's rapid economic development and growing focus on infrastructure, sustainability, and tourism, offering lucrative opportunities for individuals looking to earn extra income.