President Irfaan Ali has declared that the Government of Guyana, having received multiple proposals for a 30,000-barrel-per-day oil refinery in Region Six (East Berbice-Corentyne), is actively working to bring this project to fruition by year-end.
This announcement was a key highlight in his address during the commissioning of a $100 million recreational park in Corriverton, Berbice, on Saturday evening. President Ali emphasized that the expansion of Guyana’s energy sector is set to establish a robust presence in Region Six, contributing to the ongoing diversification of Berbice’s burgeoning economy.
Ali said as the country approaches the realization of the energy project in Region Six, there is active effort directed towards the development of the 30,000-barrel refinery. This initiative is driven by the hope that by year-end, the refinery project will be successfully concluded within Region Six, ultimately contributing to the generation of additional opportunities for the region.
In October 2022, the government had issued a Request for Proposals (RFP), for the design, finance, construct and fully own the refinery. Interested companies were required to provide several pieces of evidence to prove their worthiness for the project.
In June this year, the country’s Vice President Dr. Bharrat, Jagdeo disclosed that his administration remains committed to setting up a modular oil refinery, with four strong contenders already shortlisted. While he didn’t disclose their identities or origins, he had explained, “There were about 11 and these were narrowed down to four that met all the parameters we requested in the Request For Proposal (RFP). That now needs to move to the next stage, which is to rank these, and then start the discussions with the number one ranked firm and see if we can reach an agreement.”
Back in January, the government received nine proposals for a local oil refinery project on Crab Island in Region Six. In a press conference held in August, Jagdeo acknowledged these submissions and noted that the initial evaluation phase is complete, but the government awaits further details.
He added, “A number of other countries are sending in proposala”. “If it goes forward, it has to be on conditions that are good for the country and meet financial and technical requirements.”
Jagdeo even emphasized the government’s motivation for a refinery, citing national energy security as a prime concern. He said it is considering the feasibility of tolling some of Guyana’s crude and evaluating the associated fees for refining and storing the refined products.
Furthermore, he indicated that not only would a refinery bolster national energy security, but it could also potentially lead to more affordable energy costs based on preliminary projections.
