By the year 2030, Guyana’s total annual oil revenues can approach $30 billion within 10 years and could send the country’s GDP “skyrocketing,” Norway-based Rystad Energy noted on Tuesday.

One day after watchdog body Global Witness said Guyana stood to loose US$55B from the 2016 negotiations on the Production Sharing Agreement on the Stabroek Block, Rystad Energy said that the average government take for Guyana is around 60% in the range of mature producer Brazil.

The research firm stated that with a population of around 80,000, Guyana’s economic fortunes are poised for a major transformation after its first-ever oil development commenced production just six weeks ago. Rystad Energy added that ,”offshore oil production is expected to grow rapidly in the years to come and will generate unprecedented revenues for the Guyanese government.”

“Since the initial discovery in 2015 of the giant Liza oil field in the prolific Stabroek block, Guyana has discovered more than eight billion barrels of oil resources,” Sonya Boodoo, Vice President of Upstream Research at Rystad Energy said.

Boodoo said that with Liza field being on stream as of December 2019 and more development in other fields, the country’s rising oil revenues will make a huge difference in the continued development of the country. She said that in order for Guyana to realize the full potential of these resources, a stable regulatory and fiscal environment will be a key factor. The firm forecasts that Guyana’s oil production could reach 1.2 million barrels per day by the end of the decade, lifting total annual oil revenues to about $28 billion, assuming an oil price of about $65 per barrel.

According to Rystad Energy, while government income if projected at $270M a mere in 2020, this ,”is forecast to grow rapidly and could reach nearly $10 billion annually within a decade.” The firm explained that Guyana’s gross domestic product (GDP) currently stands at about $3.7 billion. Between 2015 and 2019, oil and gas companies invested around $8.1 billion in exploration and development activities in Guyana’s offshore sector. It was noted that under the country’s fiscal regime, these companies assume all risks during the exploration phase, which explains the negative free cash flow (FCF) seen thus far. In future, the firm said, these costs–including both investments and operational expenses – will grow as new development projects are approved and new fields are brought on stream. “At the peak, the annual costs are expected to reach around $8 billion.”