Director of Vreed-en-Hoop Shorebase Inc. (VEHSI), Nicholas Deygoo-Boyer, says Guyana may need to revisit the feasibility of building an oil refinery or establishing a larger strategic reserve of refined products as the country’s oil sector expands.
He made the remarks on the oil and gas edition of the Starting Point podcast on March 22, while discussing Guyana’s position as a crude producer that relies on imported fuels.
Deygoo-Boyer said he attended the March 19 annual general meeting of the Georgetown Chamber of Commerce and Industry (GCCI), where President Irfaan Ali made remarks about Guyana’s oil and gas future. “I listened to the President’s comments, and I found it important because we are a large producer of crude oil. Still, we do not control our fate or our destiny in terms of refined products,” Deygoo-Boyer said.
Interest in building a refinery has increased alongside that growth. The government previously received 11 bids to build and operate a modular refinery and later shortlisted five companies. The proposed facility would process about 30,000 b/d and could be located at Crab Island, at the mouth of the Berbice River in Guyana.
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Deygoo-Boyer said a refinery could help reduce exposure to supply disruptions. “I’ve seen some solutions that have been offered are maybe creating a larger strategic reserve for refined products, but having a refinery definitely gives you far more control over your fate in terms of, well, not being subject to shocks.”
He said the options should be reassessed as the country continues to develop its oil sector. “I think that it might be well worthwhile to reanalyze whether a refinery is feasible or a strategic reserve is feasible.”
According to the Guyana government, an oil refinery could strengthen energy security by allowing more of the country’s crude to be processed locally into fuels such as gasoline, diesel and jet fuel, reducing reliance on imports during supply disruptions.
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Guyana’s oil industry has expanded rapidly in recent years. Production from the offshore Stabroek Block, operated by ExxonMobil with co-venturers Hess and CNOOC, averaged 915,000 barrels per day (b/d) in January.
The VEHSI Director noted that as production from the offshore Stabroek Block continues to grow, a refinery could help retain more value from the oil sector within the local economy while supporting fuel supply stability for transportation, power generation, and industry.
