The Guyana government has not made a decision yet on whether or not to pursue the construction of an oil refinery in the country, according to comments made by Vice President Dr. Bharrat Jagdeo.
Dr. Jagdeo stated during a media conference Thursday, “We have not made a decision as to whether we’ll go with the project as yet… we’ve not made a decision at the policymaking level… and if so with whom, and much less on who will manage it. We will cross that bridge when we come to it.”
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The construction of a 30,000 barrels per day modular refinery in the world’s fastest growing economy was proposed last year, with several US-based companies submitting bids for the project, including Quanten Consortium Angola LLC, Environmental Solutions Inc., and SPEC Energy DMCC. Other bidders include CH4 Guyana Inc. & Lindsayca Inc. in collaboration with Sol Guyana Inc., Freight N Cargo Logistics Inc., DRL Engineering in collaboration with Globe Engineering Supplies & Services FZC (GESS), and Berbice Green Refining Inc. in a joint venture with ARC Energy, Polaris EPC, and Barson SG.
The Request for Proposals (RFP) for the refinery was issued in October, with the aim of constructing the refinery at the mouth of the Berbice River in the vicinity of ‘Crab Island’. The project was expected to commence construction in Q1 2023 and be completed within two years. However, the decision-making process has been delayed.
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If constructed, the refinery would be owned and operated by the private sector, with no investment interest or ownership role taken by the government. The government had previously stated that it would provide the selected firm with 30 acres of land, a 10-year tax holiday, a supply of feedstock (oil) from Guyana’s share of profit oil at market prices, and access to the domestic market for the sale of refined products (if desired). The aim of the refinery is to ensure Guyana’s energy security.
It remains to be seen whether the Guyana government will ultimately decide to proceed with the construction of the refinery. However, with a number of firms bidding for the project, it is clear that there is significant interest in Guyana developing oil refining capabilities.
