In the space of a few years, Guyana has gone from being a country with oil reserves to being one of the fastest-growing oil producers in the world. ExxonMobil, Hess, CNOOC, and a growing roster of service companies and contractors are operating at a scale that was simply not present here a decade ago.
For Guyanese businesses — contractors, subcontractors, logistics companies, and service providers — this represents an extraordinary opportunity. But it also represents a new and very specific kind of risk exposure that most existing insurance programmes were never designed to handle.
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Guyanese oil and gas workers on-site, safety equipment visible. Authentic industrial photography, not generic. Could show offshore platform, onshore equipment, or contractor team reviewing documents.
Suggested image: Guyanese oil and gas workers on-site, safety equipment visible. Authentic industrial photography, not generic. Could show offshore platform, onshore equipment, or contractor team reviewing documents.
Why oil and gas contracts are different
Most commercial contracts in Guyana include fairly standard insurance requirements — a public liability policy here, an employer's liability policy there. Energy sector contracts are different. They are typically drafted by the operators' legal teams in Houston, London, or Beijing. They are detailed, specific, and often run to several pages of insurance requirements alone.
These requirements typically include things like:
- Commercial General Liability (CGL) with combined single limits of USD $5 million or more
- Employer's Liability and Workers' Compensation at specific limits
- Automobile Liability for all vehicles used in connection with the contract
- Contractor's All Risk (CAR) for any construction or installation work
- Professional Indemnity for any engineering or consulting services
- Umbrella or Excess Liability over and above primary limits
- Specific named additional insureds, including the operator and project companies
- Waiver of subrogation clauses
- Cross-liability endorsements
Miss any one of these requirements — or provide incorrect wording — and your Certificate of Insurance will be rejected. The contract does not proceed until the insurance is right.
"I had a contract worth $200 million GYD sitting on the table. It couldn't proceed because my insurance didn't meet the requirements. One call to Abdool & Abdool and it was sorted in 48 hours."
The local content dimension
Guyana's Local Content Act requires that certain services, including insurance broking, be sourced from Guyanese providers where qualified local providers exist. Abdool & Abdool Inc. is registered with the Local Content Secretariat and is well-positioned to handle the full range of energy sector insurance requirements — both locally placed and, where necessary, through our international corresponding broking arrangements.
This means that working with us satisfies your local content obligations while still giving you access to the international insurance markets that energy sector risks require.
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Local Content Secretariat logo or a contractor's meeting in a Georgetown office, contract documents visible. Professional business photography.
Suggested image: Local Content Secretariat logo or a contractor's meeting in a Georgetown office, contract documents visible. Professional business photography.
The three most common gaps we find
When energy sector contractors come to us for a policy review, these are the gaps we most commonly find:
1. Insufficient limits
A local liability policy with a GYD $10 million limit simply does not meet the requirements of a USD-denominated energy contract. The limits in energy contracts are almost always expressed in US dollars and are substantially higher than typical local policies provide. If your existing policy has never been benchmarked against energy sector requirements, it almost certainly falls short.
2. Missing endorsements
Naming the operator and project company as additional insureds is a standard requirement in energy contracts. So is a waiver of subrogation — which prevents your insurer from pursuing a claim against the operator if they are partially at fault. Many standard Guyanese policies do not include these endorsements, and they cannot be assumed.
3. Gaps in coverage type
Most contractors working in the energy sector for the first time do not have Professional Indemnity or Contractor's All Risk in place. These are not optional extras in energy contracts — they are mandatory requirements. If you have never provided engineering services or construction work before, you may not have thought to arrange these coverages.
What to do if you're pursuing an energy contract
The moment you receive a draft contract — before you sign anything — share the insurance requirements section with your broker. We will review it against your existing coverage, identify every gap, and tell you exactly what needs to change and what it will cost. In most cases, we can have a compliant Certificate of Insurance issued within 24 to 48 hours of agreeing the cover.
Do not wait until the contract is signed and the start date is approaching. Energy sector clients have zero tolerance for delays caused by insurance non-compliance. Start the process early.
The opportunity ahead
Guyana's energy sector is still in its early stages. The volume of contracts available to Guyanese businesses is going to grow substantially over the coming decade. The businesses that will capture that opportunity are those that are already set up correctly — with the right insurance, the right documentation, and a broker who understands the sector.
If that sounds like something you want to be ready for, let's have a conversation.