How Oil Redeveloped Guyana and The Corruption that Allowed for it

Photo via First Lady Arya Ali on Facebook

***

The country of Guyana has been of growing prominence and recognition over the last few years, most famously for their recent discoveries of oil reserves by ExxonMoble. The country has had major growth in national GDP increasing by nearly 47% from 2022 to 2024, making it one of the most rapidly growing economies in the world. 

Despite this immense growth within the country and poverty rate decreasing, the poverty rate was still estimated at 48.4 percent in 2019. 

Irfann Ali, the President of Guyana, stated: 

“We have major issues on energy equality, energy poverty, energy access. And then to complicate issues, these very countries are asked to function in a digital world, so they are already suffering from immense poverty because they were never able to adapt to the Industrial Revolution. Now they are moving into the digital revolution with A.I. that they will never be able to catch up with. And at the same time, basic things like clean water, access to electricity—major segments of the population don’t have this” 

Guyana’s economy was a primarily agrarian economy until the collapse of the sugar industry. In the 1980s about a third of the country worked for the Guyana Sugar Company, a then nationalized entity. The country has since never fully industrialized, still depending heavily on agriculture goods such as those crops grown in tropical climates and mined products—rare earth metals such as bauxite and gold. Now, the largest and increasing product of the country is oil. While many Guyanease citizens worry about increasing pressures from global entities, there are also many who are optimistic for the country.. 

Despite the rapid growth of the national GDP of Guyana, there has been much criticism of previous deals struck between the government and corporations. With many estimating that despite the deal the country would only receive roughly 2% of profits from oil companies. Guyanaease Vice President Bharrat Jagdeo has stated he plans to increase that percentage up to 10%. Although it is unsure how he plans to achieve this. 

Image via CONNECTAS. (Essequibo region is in yellow and green stripes)

***

This oil boom in the country has led to the interests of Venezuela in the Essequibo region. It has been theorized that a major reason for these interests are increasing oil interests to attempt to claim large portions of the Guyanaease oil deposits. This had led to various attacks and minor skirmishes between both countries, although Venezuela denied involvement. 

There is a growing concern among the people of Guyana regarding increased focus on U.S. and Guyana’s relations. U.S. Secretary of State Marco Rubio visited the country and stated “[for] regional threats based on illegitimate territorial claims by a narco-trafficking regime… There will be consequences for adventurism,” although not stating specific policies or actions he would take he did mention the strength and power of the U.S. navy. In late 2024 President Irfann Ali visited the U.S SOUTHCOM HQ in Florida. Despite there being no record of the conversation, this shows increased military cooperation between the U.S. and Guyana. 

Overall the Guyanease government supported recent strikes made by President Donald Trump to alleged Venezuelan drug boats, along with increased naval presence within the region. It is still uncertain what effects these developments will have on the country of Guyana. These new relations have been consistent with Trump’s increasing cultivation of fossil fuels with his withdrawal from the Paris Climate Accord. 

Photo via Nathan Howard / POOL / AFP

***

Guyana held national elections on September 1st, 2025. Two of the biggest issues of the election were ongoing security concerns and worries about the future of oil in the country. The People’s Progressive Party/Civics (PPP/C), a primary Indo-Guyanease coalition supported as a moderate left and progressive party, won 36 out of 56 parliamentary seats, an increase of 3 seats from the previous election. Since independence in the 1960s the county has been more or less a two party country, dominated by the PPP/C and the People’s National Congress Reform (PNCR), a left wing socialist party. In the 2025 election a new party was created by Azruddin Mohamed called the We Invent in Nationhood (WIN) party, which is described as a grassroots populist party. The WIN party received 16 seats and the PNCR received 12. This effectively means the PPP/C held onto their majority but the WIN party now takes over being opposition leader from the PNCR who has historically been a major political party in Guyana. Azruddin Mohamed and his father are two of the richest people in the country. 

Guyanease reporter Freddie Kissoon stated “From what Georgetowners knew of him, this was a man with hardly anything to do except spend his father’s money and show off his expensive luxury vehicles.”

Posted via Azruddin Mohamed on Facebook

***

Azruddin Mohamed and his father Nazar Mohamaed are currently under investigation by the DEA, FBI, and U.S. Homeland Security for suspected drug and gold smuggling, along with tax fraud. The Mohameds were previously supporters of the PPP/C and Irfann Ali allegedly helped Exxonmobile negotiate favorable contracts with the country of Guyana. The Mohameds were previously indicted in Southern Florida for tax fraud and mail fraud. 

After leading the WIN party to gain 16 seats Azruddin Mohamed was recently arrested by Guyanease authorities after the U.S requested his extradition. The Mohameds have proclaimed innocence, although it appears the Guyanese government is cooperating with the U.S. The WIN party has accused the PPP/C of politicizing the issue as a means of silencing the opposition. Although the pair has been released on bail their passports were suspended. With Guyana’s recent resurgence on the world stage these issues will likely affect the future of the country with many national and international interests seeking to benefit from the situation. 

***

This article was edited by Abigail D’Angelo.

Related Post

Leave a Reply