CABINET has granted approval to the Ministry of Natural Resources to retain a consultant to provide a high-level feasibility assessment to the Government of Guyana on whether investing in an oil refinery is a viable economic option.

This is according to Minister of Natural Resources, Raphael Trotman, who told a post-cabinet press briefing on Thursday at the Ministry of the Presidency, that the consultant is Pedro Haas, who is the ?Director of Advisory Services at Hartree Partners.

It is a company based in the United States and is involved in providing advisory services in upstream and downstream trading and regulatory subjects in the oil and gas industry.

Minister Trotman said that the services of Haas were secured through the New Petroleum Producers Group of the Royal Institute of International Affairs, ‘Chatham House.’ Haas is expected to provide assessment within four weeks from the date of engagement and government has budgeted a total of $10M for the consultancy.

The consultant is expected to examine the demand, availability, the economic landscape and forecast. His findings, Minister Trotman said, will influence Government’s decision.

When questioned, Minister Trotman told reporters that the government has received multiple applications for the establishment of several oil refineries in Guyana.

These applications came from Guyanese companies and international companies, which are associated with Guyanese citizens.

Government’s hiring of a consultant to conduct the high-level feasibility study, comes just days after ExxonMobil announced that it has discovered more than 95 feet of high-quality, oil-bearing sandstone reservoirs in its Payara-1 well offshore Guyana.

Payara is ExxonMobil’s second oil discovery on the Stabroek Block, and is located approximately 10 miles (16 km) northwest of the 2015 Liza discovery.

In addition to conducting the feasibility study, the Natural Resources Minister disclosed that in October and November of 2016, several presentations were made by local and international companies on the establishment of an offshore oil and gas facility at Crab Island via a Public /Private Partnership (PPP) agreement.

In establishing the partnership, Minister Trotman explained that Government is looking for local content, competency and experience in the industry and the ability to invest.

The development of an onshore facility is critical to the success of the offshore oil and gas activities, and it is expected that this logistics and supply base will be able to serve the sector as a whole.

Government believes that as the industry continues to evolve, early plans must be put in place to harness the synergies and benefits that will arise from this and other necessary infrastructure, including providing much-needed employment to large numbers of Guyanese.

Onshore facilities normally include shipyard, port facilities oil field waste disposal, oil-spill response, electrical power infrastructure, support and heliport facilities, platform fabrication support and numerous other services which are provided in keeping with requests from operators and industry standards.

The Natural Resources Minister noted too that the establishment of an offshore oil and gas facility at Crab Island would create a domino effect – generating much- needed employment and aiding in the economy of Berbice.

Additionally, as the country puts the requisite policies and systems in place for the evolving oil and gas sector, there has been an overwhelming response from those interested in being part of the Petroleum Directorate being established by the Government.

An initial 14 persons are expected to staff the directorate, including a Director and Deputy Director of Petroleum, Attorneys at Law, an economist, local content and corporate social responsibility officer, and two geoscientists, and according to Minister Trotman, the Natural Resources Ministry has received an abundance of applications.

“Prior to the advertisement (for the 14 positions) and prior to the approval (for the establishment of the Petroleum Directorate), we had a sizeable stock of applications,” he posited, noting that the applications were submitted by Guyanese and foreigners. “That stock has been growing.”

Despite the influx of applications, the Natural Resources Minister said that Government, in the interest of transparency, advertised for the 19 posts so that everyone could have an equal opportunity to apply. He noted that those who had applied before the openings may have to re-apply.

Asked whether the advertising period was sufficient, Minister Trotman responded in the positive.

“We have received countless applications. Some have been emailed, some have been dropped in, and we are quite pleased that for the 14 positions that we are seeking, there is an excellent response,” he told reporters.

Those applications were submitted to the Permanent Secretary of the Natural Resources Ministry, Joslyn McKenzie.

Minister Trotman warned that the Petroleum Directorate, which will be a department within the ministry, ought not to be mistaken with the Petroleum Regulatory Commission.

“We are in the process of bringing legislation to the National Assembly for a regulatory agency, where they will be a Director or Commissioner of Petroleum, who will function in a semi-autonomous environment,” he posited.

That commission, he explained, would be similar to the Guyana Geology and Mines Commission (GGMC), the Guyana Forestry Commission and the Environmental Protection Agency (EPA). The Commissioner of Petroleum by no means will report to the Permanent Secretary, the minister made clear.

Legislation for the establishment of a Petroleum Commission, regulations for local content and for health and safety for the environment are also expected to be presented this year.