Talks progressing on Dominican Republic-built refinery in Guyana – Ambassador

…various areas being looked at with environmental impact, logistics in mind

By Jarryl Bryan

Talks are progressing on the Dominican Republic (DR)-built oil refinery earmarked for Guyana, with a number of locations being looked at, bearing in mind environmental considerations, as well as the logistics.

In an exclusive interview with Guyana Times, DR Ambassador to Guyana, Ernesto Torres Pereyra explained that interest in the project remained high and talks were continuing, to ensure that satisfactory terms for both sides could be reached.
“Everything is actually progressing well. Everybody is quite interested. The discussions are ongoing. It’s just that it’s something very technical, that involves a large investment. All the stakeholders have to continue discussions until they reach a balance that will be feasible for everybody.
“Guyana also has to explore where are the areas that potential refinery will be built, taking into consideration environmental impact… they’ll be making sure it has the least impact possible. And it should be a location that is effective and allows for proper logistics,” he further explained.
Since last year, stemming from the abundance of opportunities available in the local oil and gas sector, the Dominican Republic has been exploring the possibility of collaborating with Guyana for the establishment of a crude oil refinery here.
Dominican Republic President Luis Abinader had visited Guyana, accompanied by a delegation comprising both Government and private Sector officials. During his visit, a Memorandum of Understanding (MoU) on cooperation in energy-related matters was signed by President Dr Irfaan Ali and President Abinader at the Arthur Chung Conference Centre in Greater Georgetown, following brief bilateral talks between the two Heads of State.

This MoU sought to establish a framework to facilitate and enhance bilateral cooperation in the hydrocarbon sector of the two countries based on equality and mutual benefit. It will include the promotion of investments in each country, as well as technology transfer, research and development, the building of human resources and collaboration in the natural gas sector.

Financing and construction
An MoU was also signed by Natural Resources Minister Vickram Bharrat and Dominican Republic Foreign Minister Roberto Álvarez, with the aim of creating the opportunity for financing and construction of the refinery in Guyana.
President Ali had subsequently visited the Dominican Republic in August 2023, where further agreements were signed, including one for the joint establishment of the oil refinery in Guyana that could refine at least 50,000 barrels of oil per day. An extended meeting between both delegations was conducted, as well as a ceremony to sign MoUs for the oil refinery to be built in Guyana. And as per the terms of the agreement, the DR will have 51 per cent ownership of the refinery.
As recently as January, Vice President Bharrat Jagdeo had affirmed that an oil refinery remained on the agenda, and that the Government was at that time engaging with five potential investors in this regard. And in 2022, a Request for Proposals (RFP) was issued for the design, finance, and construction of the refinery at Crab Island, Region Six (East Berbice-Corentyne).
Specifically, companies were asked to submit bids for the design, finance, and construction of the oil refinery, at the mouth of the Berbice River. According to the RFP that was issued, the project was expected to be completed within two years of construction starting.
The plan for the refinery’s construction ties into the Government’s vision of promoting value-added production and securing energy security both for Guyana and the Caribbean. It is also an integral part of the Government’s developmental plan for Region Six.
An oil refinery is an industrial plant that transforms crude oil into various usable petroleum products, such as diesel, gasoline, lubricants and heating oils like kerosene. Refineries serve as the second stage in the crude oil production process, following the extraction of crude oil from the earth.
The Government foresees that Guyana would be able to sell crude oil components to various industries for a broad range of purposes, including fuels for transportation, heating, paving roads, and generating electricity and raw materials for chemical manufacturing.
This would attract global investments owing to soaring fuel prices worldwide, the increased cost of heating as time goes by, and a lack of adequate refining capacity to process crude into gasoline and diesel.
Neighbouring states including Trinidad and Tobago, Aruba, The Netherlands Antilles, Cuba, Jamaica, British Virgin Islands, Curaçao, Barbados and Suriname all possess oil refineries as well. (G3)