The establishment of a petrochemical plant, a refinery, and joint oil development were major facets of new deals signed between the Presidents of Guyana and the Dominican Republic (DR) on August 8, signaling strengthened cooperation between the two countries.
A total of six Memoranda of Understanding (MoU) were signed.
The first signed between Guyana’s President, Dr. Mohamed Irfaan Ali and the Head of State for the Dominican Republic, Luis Abinader spoke to establishing the refinery; a 50,000 barrel per day (bpd) facility, located in Guyana. Dominican partners would hold a 51% stake while the Guyanese government has expressed no interest in participating as a shareholder in this initiative. Guyana is also mulling a 30,000 bpd refinery.
Guyana and the DR agreed to consider the potential for the establishment of a petrochemical plant as an opportunity to promote economic growth, job creation, and strengthen industrial infrastructure for the region. Both countries agreed to identify qualified Dominican public and/or private companies that, together with Guyanese private capital companies, have the capacity to build a petrochemical plant in Guyana with an annual capacity of approximately 300,000 tons, 200 MTD of urea with full utilization of 120 MTD ammonia production.
The MoU states that at least 51% of the shareholding would correspond to the DR Government which may be accompanied by private investors at levels that the DR and Guyanese Government deem appropriate. Finally, by mutual agreement, a location for the construction of the petrochemical plant in Guyana will be assessed and identified by a working group.
For the third MoU, the Presidents also agreed to consider the potential for the joint development and exploitation of petroleum resources. Both parties agreed to establish a working group with representatives from both sides that would analyze and negotiate the terms and conditions of the possible grant of an exploration licence for an agreed petroleum block(s) in Guyana, with a view to ensuring compliance with the applicable laws and regulations in both jurisdictions. They also agreed that one of the objectives of this agreement would be for the establishment of a free trade area between the DR and the Caribbean Community to ensure the achievement of economic balance through the deepening of trade, goods, services, and investment regime.
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The fourth MoU seen by OilNOW pertained to the establishment of projects for the joint production of corn, soybeans, and other agricultural products including sugar, coconuts, and spices. Additionally, cooperation will extend to the poultry industry, where both countries will seek to stimulate and complement poultry production and value chains between them.
The fifth MoU with the Guyana Office for Investment and El Centro de Exportación e Inversión de la República Dominicana (ProDominicana), the principal governmental authority concerning the promotion and facilitation of investment in the Dominican Republic, it was agreed that both entities would share data on bilateral investment flows. They would also exchange information on their governments’ respective investment promotion activities and services, with a view of identifying areas of potential collaboration.
In the sixth MoU signed between Guyana’s Minister of Tourism, Industry and Commerce, Oneidge Walrond, and the Minister of Tourism of the Dominican Republic, David Collado Morales, it was agreed that the parties will endeavour to increase the number of tourists between the two countries through in-country marketing campaigns and participation in tourism, marketing fairs and other exhibitions in both countries.
