–Dr. Singh says

WITH the aim of promoting value-added production, the government’s vision of having an oil refinery could soon become a reality.

This was according to Senior Minister in the Office of the President with Responsibility for Finance, Dr. Ashni Singh, during his presentation of Budget 2024, on Monday.

“Mr. Speaker, the government received nine proposals from interested parties vying to construct a refinery in the Berbice region and five were shortlisted. These proposals are currently being evaluated and the final ranking is expected to be completed in the first quarter of 2024,” he said.

He remarked that the top-ranked contender will undertake an Environmental and Social Impact Assessment atCrab Island for a facility designed to process at least 30,000 bpd. The investment commitment from these shortlisted firms is expected to exceed US$1 billion.

A Request for Proposals was issued in 2022 for the design, financing and construction of the refinery at Crab Island, Region Six (East Berbice-Corentyne).

An oil refinery is an industrial processing plant where crude oil is refined into marketable petroleum products such as gasoline, asphalt, and kerosene.

With the operationalisation of a local oil refinery, Guyana would be able to supply crude-oil components to various industries for a broad range of purposes, including fuels for transportation, paving roads, and generating electricity and raw materials for chemical manufacturing.

Last year, during a state visit to The Dominican Republic (DR), President Dr Mohamed Irfaan Ali and Dominican Republic President Luis Abinader signed a memorandum of understanding (MoU) to address consideration of The Dominican Republic setting up a refinery in Guyana.

Two weeks ago, Vice-President, Dr Bharrat Jagdeo explained that the five groups include the DR group that signed this memorandum.

However, he said that the discussions have seen some divergence from the parameters originally established by the government.

“The parameters we established at the beginning, people want to change those parameters. So, if you change the parameters, you often change the nature of the project and you’re wondering whether it would be fair to the other people. So, clearly, the need for energy security is vital,” he explained.

Dr Jagdeo also stated that the government is simultaneously exploring the possibility of strategic reserves, which may negate the economic viability of an oil refinery.

According to him, the government is exploring all options to ensure that the investment is one that is economically viable, sustainable, and will bring added benefits to the country.

“This is not something that we are just going to do on a whim. We are looking at every option, and all the studies, and numbers, because often it’s the numbers that will ultimately influence the decision. These things have to be viable and good for our country in the long run, because an investment of that nature is about 30, 40 years, so you have to think it through carefully,” he said.