WHILE Guyana ponders the establishment of an oil refinery here, its neighbours Suriname and Trinidad and Tobago (TT) have signalled their intention of making available their facilities to undertake the process.
At the same time, Minister of Natural Resources, Raphael Trotman, has noted that there is no formal agreement in place for the refining of oil from the Stabroek Block with either Trinidad or Suriname.
Speaking at a forum at the Herdmandston Lodge on Thursday morning, Trotman told members of the media that no decision has been made by the Government about setting-up of a refinery.
“As you would know Cabinet approved the consultancy for us to be guided on the question,” he said.
According to him, a figure beyond G$2B would be the cost for the establishment of such a facility.

He added that recently, there were “overtures” made by the Government of Trinidad and Tobago that that country’s refining capacity is 175, 000 barrels per day and that the capacity was below optimum standards there.
In addition, he said that Trinidad has been importing oil from Nigeria and elsewhere, and the imported quantities are mixed, refined, blended and exported.
“That offer I believe will be formally made to Guyana,” Trotman disclosed.
During the recent Inter-sessional meeting of Caricom leaders here last month, Trotman said Trinidad’s Prime Minister Keith Rowley met with President David Granger and other ministers of Government, and according to him, Rowley “made a strong case for Trinidad.”
He explained that the proposal between the two countries would be made at a “state to state level”, as he referenced a memorandum of understanding which was established between the two countries, but which expired in 2015.
HIGH-LEVEL MEETING
He said that a high-level meeting will be convened later this month in the Twin-Island Republic, and according to him, emerging from that meeting will be collaborative moves on various sectors, including education, agriculture, the petroleum sector and business.
“The MoU is at a stage of close to signing, we have settled the draft, the substantial draft,” he said, noting that the document has to be approved by the Cabinet and later, finalised and signed in Georgetown.
Trotman also disclosed that Suriname has indicated its willingness to assist Guyana, since that country’s refinery is also operating below par.
He said ExxonMobil may wish to do some of its own refining. “The Government of Guyana under the terms of agreement can also determine whether it wishes to receive its portion in oil and therefore may wish to use the available facilities nearby, either Suriname or Trinidad or build one here,” he said.
As regards the verification of the volumes of oil found, Trotman said it is more of an auditing function which will be shared between the Ministries of Natural Resources and Finance.
He added that the framework is already in place and the Guyana Revenue Authority (GRA) and the regulatory Petroleum Commission, which is coming on stream in a few months, will share the responsibilities of that process.
LOWER GRADE
Exxon Mobil Country Manager Jeff Simmons who was present at the forum noted that the grade of oil refined in the Twin Island Republic is of a lower grade than that which was discovered offshore Guyana.
Simmons said that he is uncertain what will be required as regards refining oil in either of the two countries, noting that there is no agreement in place.
Meanwhile, Trotman noted at the forum on Thursday morning that the Government is working along with Exxon to determine the volume of liquefied gas which has been discovered in the Stabroek Block.
He said the plan is for the reinjection of the gas into the source in order to maintain a high pressure until the time is ripe for retrieval.
Speaking on the contract which was signed between the Government of Guyana and Exxon, he said that only “salient” pieces of information such as the 50/50 production sharing figure can be disclosed.
He said the Government cannot disclose fully the contract at this point since such a move would not be in the best interest of the country, as he made reference to the strength of the military here.
“We are already wealthy, we are going to be wealthy, we have no reason to expose all of our business to the world,” Trotman said.