With Guyana’s oil production output set to hit 600,000 barrels of oil per day this quarter, Vice President Dr. Bharrat Jagdeo disclosed on Thursday that the government’s interest in an oil refinery has not waned. The chief policymaker for the oil industry said Dominican Republic (DR) as well as four other interested parties, are under consideration for the landmark project.
Where DR government Is concerned, he reminded that its interest is tied to a Memorandum of Understanding (MoU) that was signed in August 2023 with Guyanese authorities to explore the construction of a 50,000 barrel per day (bpd) refinery.
Prior to this, Guyana had issued a Request for Proposals from interested parties for the design, financing, and construction of a 30,000 barrel per day (b/d) oil refinery. The facility would be located on land provided by the government at the mouth of the Berbice River in the vicinity of ‘Crab Island’.
Jagdeo had previously noted that Guyana would only advance with one model for the refinery to support its energy security goals.
He explained yesterday that as discussions progress on granular issues with the prospective investors, there appears to be some divergence from the parameters established at the beginning. “People want to change those parameters. So if you change the parameters, you often change the nature of the project, and then you’re wondering whether it would be fair…,” the Vice President said.
He also noted that the government is still exploring the possibility of holding onto its share of oil from the Stabroek Block for strategic reserves.
“So if you do go with strategic reserves, it may kill the economic justification for having a refinery. But as I said before, I want to make sure that you understand all that the government is considering,” he said.
The Vice President also underscored the need for such projects to be viable and carefully thought out for the country as they target 40 years of multi-million dollar investments.
