At the Guyana Energy Conference and Supply Chain Expo 2026, Minister of Public Utilities and Aviation Deodat Indar addressed international investors, emphasizing the importance of contract sanctity and security within the country. He assured the business community that their investments are fully protected.
“When we in Guyana enter into a contract, we make sure that contract stands the test of inviolability,” Indar stated. He defined inviolability as the commitment to contracts that should never be broken, infringed, or dishonored. “In Guyana, when we sign a contract, regardless of its nature, we stick by it, and that stability is what brings people to Guyana.”
This reassurance comes in the wake of scrutiny over the 2016 Production Sharing Agreement (PSA) signed between the Guyana Government and ExxonMobil under the previous APNU+AFC administration. The agreement faced backlash for its low royalty rate of just 2%, the lack of ring-fencing provisions, and broad cost recovery clauses.
Following the election of the People’s Progressive Party Civic (PPP/C) in 2020, various groups called for the renegotiation of the agreement. However, the Dr. Irfaan Ali administration committed to honoring existing contracts while also introducing new model PSAs that provide more advantageous terms for the nation.
The revised agreements include an increase in the royalty rate from 2% to 10%, a reduction in the cost recovery cap from 75% to 65%, and a balanced profit-sharing model of 50-50. The government has already signed its first new PSA with a consortium consisting of TotalEnergies (40%), QatarEnergy (35%), and PETRONAS (25%) for Shallow-Water Block S4 in November 2025. Additionally, in December 2025, Cybele Energy Limited from Ghana also entered into a new PSA with the Guyana Government.
Indar’s remarks reflect the government’s strategy to instill confidence among investors while ensuring that the country’s interests are safeguarded over the long term.
